TuSimple drama heats up ahead of pivotal shareholder meeting

Core Viewpoint - TuSimple's co-founder and former CEO Xiaodi Hou is actively seeking to change the company's board of directors and push for liquidation to return cash to shareholders, amidst ongoing disputes regarding his voting rights and the company's strategic direction [1][2][6]. Group 1: Board Control and Shareholder Actions - Hou is advocating for a written consent process to remove current board members and replace them with directors who support liquidation, allowing shareholders to act even if the current board is re-elected [2][4]. - TuSimple is urging shareholders to re-elect its existing directors and approve a staggered board plan, which would prevent future attempts to remove all board members simultaneously [3]. Group 2: Company Operations and Financial Status - TuSimple has faced significant challenges since going public in 2021, including shutting down U.S. operations and delisting from the stock market in early 2024, while planning to relaunch AV testing in China [5]. - The company is reportedly looking to utilize its U.S. funds for a new business unit in AI animation and gaming, which has caused dissatisfaction among shareholders like Hou [5][6]. - Hou estimates that liquidation could return approximately $1.93 per share to shareholders, based on the company's reported cash reserves of around $450 million as of September [6]. Group 3: Legal Disputes and Shareholder Rights - Hou has filed a lawsuit to regain control over his voting rights, arguing that a previous agreement granting control to co-founder Mo Chen has expired [8]. - The resolution of the dispute over Hou's 27.9% stake is expected to be addressed in a hearing scheduled for the first quarter of 2025 [9].