Reaching a historic milestone in the driverless vehicle space would normally be enough to send a stock soaring. But this hasn’t been a normal month for Aurora Innovation (AUR).
Earlier this month, the company launched the first commercial self-driving trucking service on public roads in the U.S., making deliveries between Dallas and Houston with no human behind the wheel.
Aurora said it plans to expand the route to El Paso and Phoenix later this year.
“It was the honor of a lifetime,” said CEO and co-founder Chris Urmson, who rode in the backseat during the inaugural delivery.
“Our commitment to building a transformative technology, earning trust, and assembling a strong ecosystem of customers and partners has made this possible,” he added in the release.
The stock jumped 13.5% after the announcement, closing at around $8, but the celebration was short-lived.
Uber cashes out, shares slide
Aurora’s stock has dropped 17.1% since that peak and closed at $6.8 on Wednesday, in part due to news from its largest shareholder.
That same day, Uber Technologies (UBER) announced it would raise $1 billion through an Exchangeable Senior Notes offering, which can be converted to either cash or Aurora common stock at Uber’s discretion.
The offering targets institutional investors and includes an option to increase the deal by another $150 million.
Uber estimates net proceeds of $978.9 million, which it may use for general corporate purposes or new investments.
While Uber hasn’t officially sold its stake, the offering introduces dilution risk and investor uncertainty, especially since Uber already owns 26% of Aurora following its 2020 sale of its self-driving unit, ATG, in a $4 billion equity deal.
Uber invested $400 million into Aurora as part of that deal, and CEO Dara Khosrowshahi had a seat on Aurora’s board until he stepped down late last year.
Leadership shakeup raises more questions
In addition to the pressure from Uber’s move, Aurora is also going through a key leadership change.
Last week, the company revealed in an SEC filing that Sterling Anderson, co-founder and chief product officer, is stepping down, effective June 1.
On Aurora’s recent earnings call, Urmson said Anderson is taking a senior leadership job at a “global iconic company.”
Anderson called it “one of the most difficult decisions I’ve ever made,” but said Aurora’s progress gave him confidence the company was at a strong inflection point.
Aurora has not yet named a successor.
Your email address will not be published. Required fields are markedmarked