Self-driving truck startup TuSimple has fired its CEO, Xiaodi Hou, after an inner investigation discovered improper dealings and doable tech switch to a Chinese language agency led by TuSimple’s now-departed co-founder, the corporate stated Monday.

The San Diego-based startup’s operations chief, Ersin Yumer, will function interim CEO and president whereas TuSimple’s board of administrators searches for a everlasting successor. Hou was additionally the corporate’s chief expertise officer.

Shares of TuSimple had been down greater than 40% in noon buying and selling following the information.

TuSimple stated in a regulatory submitting Monday that primarily based on an investigation by its board of administrators, it believes a few of its workers spent paid hours in 2021 working for Hydron, a Chinese language startup creating autonomous hydrogen-powered vans. These workers shared confidential data with Hydron earlier than a nondisclosure settlement was signed, TuSimple stated.

The board’s investigation started in July and is ongoing, the corporate stated.

The corporate’s relationship to Hydron is below investigation by the Federal Bureau of Investigation and the Securities and Alternate Fee, in response to a report Monday by The Wall Avenue Journal. Investigators are inspecting whether or not TuSimple’s management didn’t make required disclosures about its transactions with Hydron and whether or not the dealings harmed TuSimple traders, in response to the report.

A consultant for TuSimple declined to touch upon the specifics of the Journal’s report.

Hou co-founded TuSimple in 2015 and have become its CEO in March of this 12 months. Shortly after taking the highest job, he advised CNBC that he wished to be an “evangelist” for the potential of autonomous trucking.

“Who’s the perfect particular person to guide this firm? It is me! As a result of I’m a relentless decision-making machine who’s backed by the technical background,” Hou stated in an interview with CNBC on March 30. 

Hydron was based in 2021 by Mo Chen, one other co-founder of TuSimple who had beforehand served as its govt chairman. Hydron initially introduced plans to construct electrical vans powered by hydrogen gasoline cells in North America, however its operations have up to now been principally in China.

TuSimple will report its third-quarter outcomes on Monday after the market closes however has delayed its convention name to Tuesday morning.