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1/ $VTIQU (VectoIQ Acquisition II) is the Best Positioned SPAC to Take Autonomous Trucking Leader TuSimple Public, Which Could Be Valued at Over $10B.
TuSimple represents VectoIQ's Steve Girsky's big and likely sole opportunity at redemption
A Thread
TuSimple represents VectoIQ's Steve Girsky's big and likely sole opportunity at redemption
A Thread
2/ TuSimple is considered the leading lvl 4 autonomous trucking startup competing against Aurora, Embark, Ike, Kodiak & Waymo. A short summary presentation can be found here: https://tinyurl.com/y5zz3ufb
3/ TuSimple has raised total $648M and has attracted investors/partners including UPS, Nvidia, Sina, and Mando. The co has dev deals with Traton and Navistar, hauls loads for UPS and USPS, and has 51 autonomous trucks operating on highways in the southwest
4/ Based on a TuSimple pres in 2016 (source: The Information) the co had ambitious goals, projecting ~$12B Rev and ~$4B EBITDA in 2026E which in public markets could value the co at more than $10B
5/ Steve Girsky attracted negative attention for taking Nikola public via VectoIQ I, but still maintains an excellent reputation within industry and viewed as a visionary & thought leader. He has deep relationships with many industry execs and transportation policy makers
6/ Girksy's influence are what led TuSimple to select VectoIQ to lead its $350M round in Dec 2020. The oversubscribed deal pulled in many investors including Goodyear, Union Pacific, CN Rail, US Xpress, Kroger, Volkswagen's Traton, and Navistar https://tinyurl.com/yxbyovmb
7/ Shortly after closing the round, Girsky filed an S-1 for $VTIQU on 12/18/20. Many SPAC investors are skeptical and joke about his reputation, and it's this perception that probably hinders his ability to transact with many potential targets.
8/ This dynamic makes TuSimple the logical merger partner for $VTIQU and Girsky. When the Nikola fiasco unfolded in summer 2020, not only did TuSimple stick by Girsky, they added him to a high powered exec advisory board on 1/20/21: https://tinyurl.com/yywb44fy
9/ The creation of this board is a sign that TuSimple will likely go public soon. Many members are white male industry execs or politicians. TuSimple has moved its HQ to San Diego and expanded operations here in the US, however it maintains sizable R&D and operations in China
10/ The creation of this board is to help put a more "American Face" on the company to ensure a smoother public listing.
Another sign of TuSimple going public is this job listing for Global Controller with SEC reporting and SOX compliance experience: https://tinyurl.com/y2vrg8yf \\...
Another sign of TuSimple going public is this job listing for Global Controller with SEC reporting and SOX compliance experience: https://tinyurl.com/y2vrg8yf \\...
11/ \\But wait, didn't Forbes report on 11/20/20 that according to sources TuSimple intends to eventually list shares via traditional IPO and not through a SPAC merger?
12/ Remember a SPAC sponsor may have a specific target in mind but can't have negotiations or material discussions before listing. I believe the leak in Forbes was to ensure that the public and SEC wouldn't assume a deal between TuSimple and VectoIQ was a fait accompli
13/ What about potential conflicts that might arise from Girsky's involvement in both $VTIQU and TuSimple? The IPO docs outline how conflicts can be addressed by obtaining a fairness opinion and approval by a majority of disinterested directors.
14/ There are also examples where even greater conflicts were managed to bring a transaction to market:
Blackrock was a key player in CIIG's ($CIIC) merger with EV startup Arrival
Blackrock was a key player in CIIG's ($CIIC) merger with EV startup Arrival
15/ Blackrock was a seed investor in CIIG SPAC owning 10% of founder shares and anchored the CIIG IPO with 7.5% ownership
Blackrock also invested $118M in Arrival just 1 month prior to the merger with CIIG was announced.
Blackrock also invested in and anchored the $400M PIPE
Blackrock also invested $118M in Arrival just 1 month prior to the merger with CIIG was announced.
Blackrock also invested in and anchored the $400M PIPE
16/ In closing, Girsky needs a big win for redemption and all roads lead to TuSimple. There's certainly risk that TuSimple chooses to go traditional IPO or perhaps selects another SPAC, but given the deep connections and potential upside here, I'm in it to win it. $VTIQU
17/ Want to learn more about TuSimple? There are plenty of videos on youtube: https://www.youtube.com/results?search_query=tusimple
18/ @VICE did a great segment on autonomous trucking covering the technology and social impact featuring @TuSimpleAI $VTIQ $VTIQU #spacs #SpacSquad
