[ad_1]
Self-driving car startup Aurora to go public by merging with special-purpose acquisition company Reinventing Y technology partners (RTPY) after his rival Waymo scored a big round table.
X
The proposed transaction values Aurora at $ 11 billion. It will provide the startup with $ 2.5 billion in cash to fund its growth. It should close in the second half of 2021. Then the company will take the name Aurora Innovation and trade under the symbol AUR.
In addition, it includes a private equity investment of $ 1 billion. PIPE investors and partners include Uber, Volvo and Paccar. Also major You’re here (TSLA) shareholders Baillie Gifford, Fidelity and T. Rowe Price.
Aurora was founded in 2017 by former Google, Tesla and Uber (UBER) veterans. The company plans to launch its first autonomous product for autonomous trucks at the end of 2023. Ultimately, it plans to expand into the last mile delivery and transportation markets.
Volvo and Paccar dominate the Class 8 truck market, which includes semi-trailers.
In a new statement Thursday, Aurora described the merger deal as a major step towards commercializing autonomous vehicles.
The Aurora Pilot is expected to be a Level 4 system powering a range of vehicles from sedans to Class 8 trucks. It includes long-range lidar sensors that help the driverless vehicle “see” and track objects on the road. even in bad weather or bad weather.
Autonomous car leader raises $ 2.5 billion
Waymo, a self-driving car subsidiary of the owner of Google Alphabet (GOOGL), is also developing a Level 4 autonomous driving system. This means fully automated driving in very complex urban road conditions, although a human driver can take control if necessary. On June 16, Waymo announced a $ 2.5 billion investment round to advance its autonomous driving technology and grow its team.
However, Waymo, considered the leader in the development of autonomous driving technology, has been criticized for making slower-than-expected progress in bringing its technology to market. Aurora is seen as a credible challenger to Waymo.
IBD Live: a new tool for daily stock market analysis
Autonomous car inventories
Shares of Reinvent, which will soon become Aurora stock, gained 1.5% to close at 10:00 a.m. in Thursday’s trading. Google stock lost 1%. Among the lidar stocks, Lidar Velodyne (VLDR) lost 0.75%, Light technologies (LAZR) decreased by 1.4%, and Expulsion (OUST) fell 0.9%.
“By combining with Reinvent and with this incredible group of investors, we are even closer to the deployment of autonomous vehicles and the benefits that this technology offers to the world,” said Chris Urmson, co-founder and CEO of Aurora, in Thursday’s press release. .
Urmson left Google after being replaced to become CEO of the subsidiary that became Waymo. He recently rejected Tesla’s claims that its vehicles could soon function as driverless taxis.
Another co-founder, Drew Bagnell, helped lead Uber’s autonomous driving project. At the end of 2020, Uber sold this project to Aurora. A third co-founder, Sterling Anderson, led the Tesla AutoPilot team.
Find Aparna Narayanan on Twitter at @IBD_Aparna.
YOU MAY ALSO LIKE:
These are the 5 best stocks to buy and watch right now
Stocks to watch: IPOs, large caps and top-rated growth stocks
Find the latest stocks reaching buy zones with MarketSmith
Why this IBD tool makes it easy to find the best stocks
Looking for the next big stock market winners? Start with these 3 steps
[ad_2]
Source link