TuSimple Investor Presentation

2021 TuSimple Holdings Inc. 1

COMPANY OVERVIEW


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.


~$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


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


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


1. Note: UPS North America Air Freight division

COMPANY HISTORY



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


~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



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


L4 TECHNOLOGY TAILORED FOR COMMERCIAL TRUCKING


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


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


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


REGULATORY ENVIRONMENT


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


“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


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


$

OUR GO-TO-MARKET MODEL: TWO COMPLEMENTARY OFFERINGS


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)


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



DRIVING TOWARDS A SAFER AND MORE EFFICIENT FREIGHT PARADIGM

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