Self-driving car start-up Aurora will go public through the merger with special purpose vehicle Reinvent Technology Partners Y (RTPY) after rival Waymo closed a large financing round.
Aurora was founded by Google, Tesla and Uber veterans
The proposed transaction values Aurora at $ 11 billion. It will provide the start-up with $ 2.5 billion in cash to further fund the company’s growth. The transaction is expected to take place in the second half of 2021. Then the company will take the name” Aurora Innovation”and trade under the abbreviation AUR.
In addition, it includes a private investment in private equity of $ 1 billion. PIPE’s investors and partners include Uber, Volvo and Paccar, as well as Tesla’s major shareholders Baillie Gifford, Fidelity and T. Rowe Price.
Aurora was founded in 2017 by former Google, Tesla and Uber (UBER) veterans. The company expects to launch its first product at the end of 2023. autonomous product for self-driving trucks to the market.
Volvo and Paccar dominate the market for class 8 trucks, which also include tractor units.
In a new press release on Thursday, Aurora described the merger agreement as a important step towards commercialization of self-driving vehicles.
The Aurora Driver is expected to be a level 4 system that powers 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 poor light or weather.
The leader in self-driving cars raises $ 2,5 billion
Waymo, a subsidiary of self-driving cars owned by Google’s Alphabet, is also developing a level 4 autonomous driving system. This means fully automated driving in highly complex urban road conditions, with a human driver able to 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.
Waymo, which is considered a leader in the development of self-driving technologies, has come under criticism, however, because it Commercialization of its technology is proceeding more slowly than expected. Aurora is considered a credible challenger to Waymo.
Shares for self-driving cars
The shares of “Reinvent” (soon to be the Aurora share) rose by 1,5% in stock exchange trading on Thursday and closed at 10,00. Google stock lost 1%. Among Lidar shares, Velodyne Lidar lost 0.75%, Luminar Technologies lost 1.4%, and Ouster lost 0.9%.
“By working with Reinvent and this incredible group of investors, we are even closer to deploying self – driving vehicles and bringing the benefits of this technology to the world” – Chris Urmson, co-founder and CEO of Aurora, in a press release on Thursday.
Urmson left Google after being passed over to become CEO of the offshoot that became Waymo. He recently dismissed Tesla’s claims that its vehicles could soon operate as driverless taxis.
Another co-founder, Drew Bagnell, helped lead Uber’s self-driving project. At the end of 2020, Uber sold this project to Aurora. A third co-founder, Sterling Anderson, led Tesla’s AutoPilot team.
Tesla registrations in California increase by 85 in second quarter %
Meanwhile, Tesla Inc. ‘ s vehicle registrations rose. in California in the second quarter compared to the previous year by more than 85%, mainly due to the success of the company’s Model Y.
The automaker reported earlier this month Record vehicle deliveries for the quarter from April to June. California approvals for the Model Y, Tesla’s electric crossover utility vehicle, rose to 13,581, more than sevenfold.
The focus is now on the Company’s earnings report for the second quarter, due on July 26, with investors continuing to try to gauge whether Bitcoin’s recent decline would hurt Tesla’s bottom line.
The total number of vehicle registrations in the second quarter in the 23 states where data was collected was 46,926, with Model Y accounting for more than half of the registrations.
California, a pioneer of the electric car manufacturer, accounted for about half of the vehicle registrations in these states with a total of 23,556 registrations.
Tesla has in recent months the Prices for its vehicles increased, with billionaire chief executive Elon Musk blaming the rise in May on “large price pressures in the supply chain,” particularly in commodities.
Registration numbers may not accurately reflect the number of vehicle deliveries during the quarter, as registrations in the United States typically take about 30 days from the time of sale.
Last updated on July 16, 2021
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