AUTONOMOUS DRIVING. PlusAI is Ready to Go Public

25/05/2021

Autonomous truck navigation system specialist PlusAI is merging with special acquisition company Hennessy Capital Investment, a clear sign that it is ready to hit the market, the stock market that is. According to the Wall Street Journal, this move, which is expected to close during Q3 2020, should provide about $500 million in gross proceeds and a market capitalization of roughly $3.3 billion. This fresh cash injection should provide the company with the financial backing necessary to fine tune its automation software and grow until it is self-sufficient, all of which is in the not-so-distant future according to PlusAI Chief Executive and co-founder David Liu. The company expects to generate an estimated $16 m in revenue this year, $250 m in 2022, and to be cash-flow positive by 2023 with a $78 m EBITDA. How does it do that? Based is the Silicon Valley and with R&D offices in China, PlusAI already has agreements in place with Iveco as well as Chinese truck manufacturer FAW Jiefang. It also claims to have a signed deal to provide 1,000 trucks retrofitted with its technology to a large U.S. private trucking fleet, the first batch of which was delivered in February. Furthermore, Mr. Liu says PlusAI is working with several U.S. shipping companies and trucking fleets, that many are running pilots of its technology, and that its backlog extends into 2023. PlusAI plans to deploy about 160 trucks this year in the U.S., scaling up to around 1,300 in 2022, according to an investor presentation.
Source: Wall Street Journal
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