Self-driving truck startup Kodiak AI announced it has raised $100 million in funding. However, the company's decision to sell shares at $6.50, significantly below market price, triggered investor backlash. As a result, the company's stock fell 37% in after-hours trading. This is reported by Techcrunch.com reports .
According to a filing with the Securities and Exchange Commission (SEC), Ares Management and several institutional investors participated in the funding round. As part of the deal, investors were also granted warrants to purchase shares in the future at $6. These funds will be used to expand the company's autonomous trucking technology and cover operational expenses.
Although Kodiak AI generated $1.8 million in revenue in the first quarter of this year, operating losses reached $37.8 million. This is double the figure from the previous year. Despite financial challenges, the company signed a new commercial contract with Roehl Transport and launched pilot logistics programs in Canada.
Founder and CEO Don Burnette plans to launch driverless trucking operations on public highways by the end of this year. Currently, while the trucks operate autonomously, a safety operator remains behind the wheel at all times.
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