TuSimple, Navistar scrap deal to develop self-driving trucks

TuSimple Holdings Inc (TSP.O) and Navistar have ended a deal to co-develop self-driving trucks, the companies announced on Monday.

In 2020, Illinois-based Navistar bought a minority stake in TuSimple and announced a deal to co-develop heavy-duty self-driving trucks by 2024, as the autonomous driving technology space boomed with investor attention.

The trucks would have operated at Level 4 autonomy - where vehicles can operate without a driver under set conditions.

TuSimple also received nearly 7,000 orders for the self-driving trucks from companies including DHL Supply Chain, Schneider SNDR and U.S. Xpress (USX.N).

San Diego, California-based TuSimple, which in October said it plans to focus on initial commercialization of its trucks in 2023, did not specify reasons for ending the deal.