Don Burnette, Kodiak Founder and CEO, says the company is now in production with driverless systems operating safely. He tells Romaine Bostick and Katie Greifeld on "The Close" that adoption is expected to accelerate as customers grow more comfortable with autonomous trucking. ...

Regulatory Landscape & Government Interaction - Government regulation is crucial for accelerating robotics development, including autonomous driving and humanoid robotics [1] - The company has been in discussions with regulators at the Congress level, indicating a push for the next level of regulations and funding [2] - The US autonomous trucking regulations are considered among the best, enabling technology development [4] Competition & Commercialization - The technology is on the verge of widespread commercialization, leading to real international competition in robotaxis [3] - The company estimates it is 70% of the way to full commercialization [6] - Continuous driverless commercial operations are anticipated next year [8] Technology & Operation - The company is focused on understanding system failure modes, similar to aircraft engineering, to ensure safety in humanless operation [7] - The company's business logic prioritizes delivering value to the customer by minimizing operating costs [10] - Current truck designs are maintained to allow for occasional driver maneuvers in specific situations [11] Market Impact & Future Outlook - The company's operating cost is under $2 compared to human drivers at 2.26% [14] - Autonomous trucking is expected to mitigate 20% of the driver shortage gap by 2030 [15] - Expansion will be gradual and lane-by-lane, prioritizing safety [16]

Core Viewpoint - Maersk is involved in a legal dispute with Einride over the termination of a partnership intended to supply electric trucks, with both parties presenting conflicting narratives regarding the reasons for the collapse of the deal [1][2][3]. Group 1: Legal Dispute - Einride filed a lawsuit against Maersk in November 2024, claiming that Maersk terminated the partnership prematurely [1]. - Maersk stated it had "no choice" but to end the partnership due to Einride's failure to deliver the ordered electric vehicles and pay its vendors [2]. - Einride disagrees with Maersk's characterization of the situation, leading to the ongoing legal action [3]. Group 2: Partnership Details - The partnership, announced in March 2022, aimed for Maersk to incorporate 300 electric trucks into its North American operations, marking it as the "largest heavy-duty electric truck deployment to date" [5]. - The trucks were to be utilized by Maersk's subsidiary, Performance Team, and were expected to integrate with Einride's Saga digital road freight operating system [6]. - Charging solutions for the trucks were planned to be developed by Voltera near the ports of Los Angeles and Long Beach [6]. Group 3: Confidentiality and Legal Proceedings - The California court allowed parts of Einride's complaint to be filed under seal due to sensitive commercial and pricing information [3]. - Judge Robert Broadbelt III expressed concerns that disclosing this information could give competitors an unfair advantage in negotiations [4].

Industry Overview & Market Size - The US freight industry is nearly a $1 trillion market, with trucks accounting for nearly 80% of intrastate shipments [3] - The long haul trucking market and the regional/middle mile segment each represent about $300 billion [6] - Goldman Sachs expects the self-driving truck market to increase by over 13,000% in four years, from $130 million in 2026 to $18 billion in 2030 [7] Autonomous Trucking Technology & Deployment - Aurora is running fully driverless 18-wheelers on public freeways between Dallas and Houston [4] - Aurora has observed 14% fuel savings using autonomous driving compared to manual driving [5] - Aurora has driven 3 million miles in autonomy, including 50,000 driverless miles, with a perfect safety record [5] - 24 US states have opened their doors for autonomous freight operations, with Texas leading in regulatory environment [7] - Germany allows testing of autonomous driving up to level 4, but lags behind the US in real-world testing due to stricter regulations [17] Labor Market & Economic Impact - Autonomous trucking could add over 450,000 jobs to the American economy over the next 15 years [31] - The average age of truck drivers in the United States has increased from 35 to 55 in the last 20 years [27] Cost Analysis - Goldman Sachs analysts expect the cost per mile for driverless trucks to fall from $6.15 to $1.89 by 2030 [24] - Human-driven truck costs could increase from $2.61 to $2.80 per mile over the same period [24]

Financial Data and Key Metrics Changes - The company recognized revenue of $1 million from driverless and vehicle operator supervised commercial loads during the second quarter of 2025 [26] - The operating loss for the second quarter was $230 million, with R&D expenses totaling $146 million and SG&A expenses at $25 million [27] - The company ended the quarter with $1.3 billion in cash and short-term investments, indicating strong liquidity [28] Business Line Data and Key Metrics Changes - The Aurora driver logged over 20,000 safe driverless miles from commercial launch in April through June, maintaining nearly 100% on-time performance [7][9] - The company expanded its fleet from one to three driverless trucks operating between Dallas and Houston [8] - The validation of driverless operations at night has been completed, significantly increasing truck utilization potential [12] Market Data and Key Metrics Changes - The company is focused on expanding its driverless operations, with plans to validate operations between Fort Worth and El Paso and further extend to Phoenix by the end of the year [13] - The terminal in Phoenix is designed to optimize speed to market and integrate with future customer endpoints [14] Company Strategy and Development Direction - The company aims to become an essential partner in the freight industry by increasing customer value and addressing structural challenges such as driver shortages and rising labor costs [15][19] - Partnerships with organizations for workforce development are being established to prepare technicians for the demands of autonomous vehicles [16] - The company is advancing its hardware development to reduce costs and support scaling and profitability ambitions [19][20] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of safety and thorough validation before declaring operations as driverless [38] - The company is optimistic about the growing recognition of its leadership in autonomous trucking and the urgency felt by customers to integrate driverless trucks [15] - Management expects to unlock significant value for freight customers through the expansion of driverless operations [13] Other Important Information - The introduction of the America Drives Act aims to establish a federal framework for self-driving trucks, which could enhance the regulatory environment for the company [22][23] - The company is working on second and third generation commercial hardware kits to support scaling and profitability [19][20] Q&A Session Summary Question: Will the Volvo trucks be operating without an observer? - The company expects to receive the trucks by the end of the year but will initially use them for development and will not operate them without an observer [32] Question: Is there additional commercial interest since the launch? - The company has seen increased excitement and interest from carriers and fleet operators, indicating a shift from selling an idea to selling a real product [34][35] Question: How is the performance in wind and rain being tracked? - The company is focused on safety and thorough validation before launching in challenging weather conditions, with positive early returns on performance [38] Question: What is the ramp-up plan for trucks in operation? - The company is following a crawl, walk, run model and is balancing growth with development and testing to maximize the probability of success [51] Question: What is the relationship with Uber post their debt offering? - Uber remains a great partner, focusing on ride-hailing while the company focuses on trucking, with ongoing collaboration in freight operations [70] Question: What is the status of the hardware development with Fabrinet and Continental? - The company is on track with its hardware development, with the second generation expected in 2026 and the third generation in 2027 [100]