Why TuSimple Stock Crashed and Burned Today
Shares of TuSimple Holdings (NASDAQ: TSP) skidded off the road Monday, crashing as much as 47.5%. As of 12:47 p.m. ET, the stock was still down 46.4%.
The catalyst that sent the self-driving truck start-up tumbling was a report that federal regulators have launched an investigation into whether executives improperly shared proprietary technology with a start-up based in China.
A number of federal agencies, including the Federal Bureau of Investigation (FBI), Securities and Exchange Commission (SEC), and the Committee on Foreign Investment in the U.S. (Cfius) are investigating a relationship between CEO Xiaodi Hou and Hydron, a Chinese start-up focused on self-driving, hydrogen-powered trucks -- a company launched last year by Mo Chen, one of TuSimple's co-founders. Specifically, TuSimple may have shared protected technology without notifying regulators and shareholders.
Source Fool.com
