Post on 19-Dec-2021
2021 TuSimple Holdings Inc. 2
DISCLAIMER
This presentation contains forward-looking statements. All statements other than statements of historical fact contained in this presentation, including statements as to future results of operations and financial position, planned products and services, business strategy and plans, launch dates of products or services, expected safety benefits of our autonomous semi-trucks, objectives of management for future operations of TuSimple Holdings Inc. and its subsidiaries (the "Company", “we”, “our” and “us”), market size and growth opportunities, competitive position and technological and market trends, are forward-looking statements. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. In some cases, you can identify forward-looking statements by terms such as “will”, “expect,” “plan,” “anticipate,” “intend,” “target,” “project,” “predict,” “potential,” “explore” or “continue” or the negative of these terms or other similar words. The Company has based these forward-looking statements largely on its current expectations and assumptions and on information available as of the date of this presentation. The Company assumes no obligation to update any forward-looking statements after the date of this presentation, except as required by law.
The forward-looking statements contained in this presentation are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause actual results or outcomes to be materially different from any future results or outcomes expressed or implied by the forward-looking statements. These risks, uncertainties, assumptions and other factors include, but are not limited to, those related to autonomous driving being an emerging technology, the Company’s limited operating history in a new market, the regulations governing autonomous vehicles, the Company’s dependence on its senior management team, reliance on third-party suppliers, potential product liability or warranty claims and the protection of the Company’s intellectual property. Moreover, the Company operates in a competitive and rapidly changing environment, and new risks may emerge from time to time. You should not put undue reliance on any forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. It is not possible for the Company to predict all risks, nor can the Company assess the impact of all factors on its business or the markets in which it operates or the extent to which any factor, or combination of factors, may cause actual results or outcomes to differ materially from those contained in any forward-looking statements the Company may make.
You should carefully consider the foregoing factors and the other risks and uncertainties described under the caption “Risk Factors” in our final prospectus dated April 14, 2021 filed with the Securities and Exchange Commission (the “SEC”) on April 16, 2021 and our other filings with the SEC, including our most recent quarterly report on Form 10-Q. These SEC filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. This presentation also contains estimates, forecasts and other statistical data relating to market size and growth and other industry data. These data involve a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. The Company has not independently verified the statistical and other industry data generated by independent parties and contained in this presentation and, accordingly, it cannot guarantee their accuracy or completeness. In addition, assumptions and estimates of the Company’s future performance and the future performance of the markets in which the Company competes are necessarily subject to a high degree of uncertainty and risk due to a variety of factors. These and other factors could cause results or outcomes to differ materially from those expressed in the estimates.
2021 TuSimple Holdings Inc. 3
~$4.0 trillion global truck freight market is
ripe for disruption
Through our Autonomous Freight Network
(AFN), TuSimple is committed to bringing the
most safe, fuel-efficient & low-cost freight
capacity to market, combining the best L4
autonomous technology, hardware and go-
to-market strategy
2021 TuSimple Holdings Inc. 4
Top-Tier Downstream Partners
Proprietary AI-Technology Focused Solely on Trucking
World-Class Hardware Partnerships
Scalable Go-to-Market via Autonomous Freight Network
Market Demand Proprietary Technology Industry Dynamics Business ModelOverview
~9,900 (1)
Miles of Mapped Routes
~5.4 million (1)
Road Miles on Surface Streets & Highways up to 75 mph
357 (1)
Patents
1,000 meterPerception Capability
L4 Production ProgramPurpose-built Semi-trucks
Global OEM PartnershipOne of World’s Premiere Truck-makers
Tier-1 Supplier Partners6,875 (1)
L4 Truck Reservations
1. Note: As of September 30, 2021
On-going DevelopmentTesting on public roads in Sweden
~1,000 (1)
R&D Personnel Globally
TUSIMPLE IS A GLOBAL LEADER IN AUTONOMOUS TRUCKING TECHNOLOGY
2021 TuSimple Holdings Inc. 5
TUSIMPLE IS A LEADER IN AUTONOMOUS TRUCKING
2021 Driven over 160,000 Autonomous Miles for UPS NAAF(1)
Traditional IPO raised $1 billion in net proceeds – world’s first publicly listed AV company
2020 Global Partnership with TRATON announced
+$500 million raised in Series E
Production Partnership with Navistar announced
2019 Autonomous Freight Network Launched
~70 miles, zero-disengagement terminal-to-terminal run featured in CBS 60 Minutes report
+$165 million raised in Series D
UPS announced investment in TuSimple
Freight Operations with UPS and USPS began
2018 First company to demonstrate fully AV truck runs on surface street and highways with our 1,000m perception breakthrough
Broke 10 world records as computer vision world champions
2016 Nvidia announced strategic investment in TuSimple
2015 TuSimple founded
Dr. Hou is an internationally renowned expert in artificial intelligence, machine learning, and computer vision
His Spectral Saliency Theory is one of the most cited AI theories in academia
Earned a Ph.D. in Computation and Neural Systems from the California Institute of Technology
Dr. Xiaodi Hou, Co-founder & CTO
Fully proprietary AI-technology
AI technology enables camera-centric 1,000 meter perception
Focused solely on AV trucking since 2015
KEY TECHNOLOGICAL ADVANTAGES
1
3
2
4 More granted patents than all other trucking focused AV companies combined
Market Demand Proprietary Technology Industry Dynamics Business ModelOverview
1. Note: UPS North America Air Freight division
COMPANY HISTORY
2021 TuSimple Holdings Inc. 6
Market Demand Proprietary Technology Industry Dynamics Business ModelOverview
1. Armstrong & Associates, Inc., 2019 Global Third-Party Logistics (3PL) Market 2. American Trucking Associations, U.S. Freight Transportation Forecast 2019 to 2030 3. FMCSA 4.ATA 5. ATRI: In strong economic periods 6. ATA 7. NHTSA: Passenger vehicle occupants killed in semi-truck collisions 8. ATRI: From 2012-2018
THE TUSIMPLE OPPORTUNITY
Reduced costs: Labor makes up ~43%(8) of per mile cost structure
Middle-mile suited for Level 4 (L4) autonomy
10% of the nations’ trade corridors account for moving nearly 80% of all transported goods
$4 TRILLION GLOBAL TRUCK FREIGHT MARKET(1)
$800 billion U.S. truck freight market(2) | ~2.3 million Class 8 semi-trucks(3) | +70% of all freight in the US transported by trucks(4)
Diminishing Supply
Driver shortage expected to hit historic high in 2021 of over 80,000 drivers(6)
Driver turnover exceeding 100%+(5)
Increasing Demand
Rising e-commerce penetration into retail
Trends such as same or next-day shipping
Safety and Insurance Constraints
40% increase in fatalities involving semi-trucks from 2009-2019(7)
Insurance premiums are rising at a 5% CAGR(8)
INCREASED DEMAND FROM E-COMMERCE TRENDS FACED WITH A GROWING SHORTAGE OF DRIVERS & SAFETY ISSUES
THE NEED FOR AV TRUCKING
2021 TuSimple Holdings Inc. 7
~10% better fuel efficiency
Adaptive control to optimize for different loads
Robust control to handle unknown perturbations (uneven surface / side wind)
Precise lane centering
Control Mapping
Scalable, automated nationwide mapping solution
Low creation and maintenance costs
Low latency for map update
Very high accuracy (5cm)
Safe, stable high-speed driving up to 75mph
35 seconds of planning horizon
Motion Planning
Self-supervised active-learning data pipeline
High output, low-cost human labeling platform
Proprietary simulation toolchain
Machine Learning Infrastructure
1,000-meter perception range
Camera-centric architecture with multi-sensor fusion (LiDARs & Radars)
600 trillion operations per second
Perception
MOST ADVANCED AUTONOMY FOR TRUCKS
OUR FIVE UNIQUE KEY COMPONENTS ENABLE SAFE & RELIABLE AUTONOMY FOR TRUCKS
Market Demand Proprietary Technology Industry Dynamics Business ModelOverview
2021 TuSimple Holdings Inc. 8
WE BELIEVE ONLY L4 AUTOMATION CAN ENABLE NEW FREIGHT CAPACITY
L4 Autonomous TuSimple semi-trucks on our AFN are expected to be able to
operate L4 autonomous, driver-out, on highways and surface streets for terminal-to-terminal operations
Vehicle may be operated by human driver, if desired
Well suited for “middle mile” truck freight – fixed and predictable routes make up the majority of total miles driven
SAE LEVELS OF AUTOMATION
L5
L4
L0
L1
L2
L3
We do not believe levels lower than L4 directly address current industry pain points
Req
uire
s D
rive
r
1,000m perception
Software Full Stack Perception
Motion Planning
Control
ML Infrastructure
Mapping
Market Demand Proprietary Technology Industry Dynamics Business ModelOverview
L4 TECHNOLOGY TAILORED FOR COMMERCIAL TRUCKING
2021 TuSimple Holdings Inc. 9
THE OBVIOUS FACTS ABOUT TRUCKS
Wide, long, heavy, high speed
THE NOT SO OBVIOUS FACTS
Braking distance: 200 meters
Lane change: 10 seconds
FUNDAMENTAL CHALLENGES FOR ALGORITHMS
Requires farther perception range by a magnitude
– Out of the range of LiDAR sensors
Requires longer planning horizon by a magnitude
– Typical sedan planner is by design not suitable
for long planning horizon
Requires more precise control accuracy by a
magnitude
– Notoriously hard problems, even in academia
Market Demand Proprietary Technology Industry Dynamics Business ModelOverview
FEWER CORNER CASES
Highway focused operation
Clearly defined traffic rules
FREEDOM TO CUSTOMIZE THE NETWORK
Actively avoid school zones and other tricky traffic conditions
Lane operation is not contingent on full feature completion
NO HUMAN IN THE VEHICLE
Cargo safety is a much easier topic than passenger safety
No requirement on the “comfort level”
GREATER PER-MILE DATA DENSITY
High data density (i.e., amount of data accumulated on the same route) eliminates corner cases
Very low latency of map update
TECHNOLOGICAL CHALLENGES TECHNOLOGICAL BENEFITS
UNIQUE CHALLENGES & BENEFITS OF L4 TRUCKING
2021 TuSimple Holdings Inc. 10
Seattle
Portland
San Francisco/Oakland
Los Angeles/Long Beach
San Diego
Phoenix
TucsonEl Paso
San AntonioHouston
New Orleans
Tampa
Jacksonville
Atlanta
Greensboro
Norfolk
Philadelphia
New York City
BostonCleveland
Pittsburgh
Nashville
MemphisOklahoma City
Kansas CityDenver
Salt Lake City
Minneapolis
Chicago
Laredo
Cincinnati
Dallas
St. Louis
Orlando
Charlotte
Source: 1. Mapping Freight: The Highly Concentrated Nature of Goods Trade in the United States, Brookings
26 states
allow autonomous semi-truck commercial deployment
44 states
allow autonomous semi-truck testing
Future Expansion Plans [ 2022 – 2024]
Current Routes
Near-Term Expansion Plans [ 2021 ]
AFN Network Expansion Plans
L4 Autonomous Commercial Operations
In Progress
L4 Autonomous Testing
Regulatory Landscape 50 states
cohesive AV operations framework laid out in US DOT 4.0 AV Regulations
Regulated at Country Level to Allow Testing / Commercial Operations
Legal Framework Exists to Harmonize Across EU
Regulation Supports Pilot Testing
EUROPE
CHINA
Market Demand Proprietary Technology Industry Dynamics Business ModelOverview
REGULATORY ENVIRONMENT
2021 TuSimple Holdings Inc. 11
Safety• 94% of serious crashes
estimated to be due to human error(1)
• Insurance premiums are increasing at 5% CAGR(2)
Capacity Shortage & Costs• Rising e-commerce penetration
into retail
• Persistent driver shortage limits capacity and increases costs
ESG• Medium and heavy-duty
trucks contribute 23% of U.S. transportation GHG emissions(3)
Source: 1. NHTSA. 2. ATRI. 3. EPA.
Reduces driving
accidents and
insurance costs
Increases capacity, speed & flexibility of system
More efficient fuel usage translatesto increased operating savings
TuSimple Solution
1 2 3
Market Demand Proprietary Technology Industry Dynamics Business ModelOverview
“The safety benefits of automated vehicles are paramount. Automated vehicles’ potential to save lives and reduce injuries is rooted in one critical and tragic fact: 94% of serious crashes are due to human error.” - NHTSA
“Roads filled with automated vehicles could also cooperate to smooth traffic flow and reduce traffic congestion. Americans spent an estimated 6.9 billion hours in traffic delays in 2014, cutting into time at work or with family, increasing fuel costs and vehicle emission.” - NHTSA
AVs Have Potential Economic & Societal Benefits Autonomous Technology Will Likely Improve Traffic Congestion
TUSIMPLE’S L4 TECHNOLOGY PROVIDES SIGNIFICANT SOCIETAL BENEFITS
2021 TuSimple Holdings Inc. 12
TuSimple CapacityCarrier-Owned CapacityAutonomous capability delivered to users’ fleets Autonomous capacity as a service
Carriers and Shippers that own
captive fleet
Pay per mile fee for TuSimple Path, a turnkey “virtual
driver” to enable autonomous operation across our AFN
Purchase fully autonomous purpose-built semi-truck for
use on AFN network
Capital-efficient 3rd party financing to build
TuSimple Capacity fleet
Shippers
TuSimple Capacity has both capability- and cost-based
advantages for our customers
Asset Owners / Financing Partner
Fully autonomous purpose-built
semi-truck
$$
Customers could achieve significant cost savings +
safety and efficiency benefits
$ / mile Subscription Fee
Upfront InvestmentControls Own Capacity
Uses Own Terminals
$ / mile Freight Rate
Capital Light MethodUses Shared Capacity
Leverages Shared AFN Terminals
Market Demand Proprietary Technology Industry Dynamics Business ModelOverview
$
OUR GO-TO-MARKET MODEL: TWO COMPLEMENTARY OFFERINGS
2021 TuSimple Holdings Inc. 13
TuSimple Capacity & Carrier-Owned Capacity
Technology License
TuSimple Capacity & Carrier-Owned Capacity
2025 Commercial Production
2025 Launch
2020 AFN Launch2024 Commercial Production
Go-To-Market Expected Launch YearTAM(1)
Source: 1. Dollar TAM per Armstrong & Associates. 2. ACT Research. 3. China National Bureau of Statistics. 4. Eurostat
Hardware Partner
China & Greater Asia
United States
Europe
$800bn ~2.3MMTAM Class 8
Semi-trucks(2)
$1.7tn ~7.6MMTAM Heavy Duty
Trucks(3)
$400bn ~2.3MMTAM Heavy Duty
Trucks(4)
Market Demand Proprietary Technology Industry Dynamics Business ModelOverview
SUBSTANTIAL GLOBAL TAM: RELATIVELY LOW PENETRATION COULD DRIVE SUBSTANTIAL REVENUE BASE
2021 TuSimple Holdings Inc. 142021 TuSimple Holdings Inc.
LEADING PROPRIETARY SOFTWARE
focused on addressing L4 SEMI-TRUCK LONG HAUL terminal-to-terminal
operations
WORLD-CLASS HARDWARE PARTNERSHIPS
strengthened competitive position via CAPITAL LIGHT APPROACH, VERTICAL INTEGRATION & INCREASED CONTROL
resulting in reliable & scalable hardware
Reliable L4 Driver-Out Autonomous Semi-Trucks at ScaleReliable L4 Driver-Out Autonomous Semi-Trucks at Scale
aligned with some of the LARGEST DISTRIBUTION NETWORKS ACROSS
DIVERSE END MARKETS in North America & abroad
Network Based Business
De-risks Adoption
SCALABLE GO-TO-MARKET STRATEGY
WHAT IT TAKES TO WIN
TuSimple Has the Key Ingredients to Bring Safe, Reliable, Autonomous Freight Capacity to Market at Scale TuSimple Has the Key Ingredients to Bring Safe, Reliable, Autonomous Freight Capacity to Market at Scale
Market Demand Proprietary Technology Industry Dynamics Business ModelOverview