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COMPANY OVERVIEW 2021 @TuSimple, Inc. 1
DISCLAIMER
This letter and any accompanying oral presentation contain forward-looking statements. All statements other than statements of historical fact contained in this letter, including statements as to future
results of operations and financial position, planned products and services, business strategy and plans, launch dates of products or services, expected safety benefits of our autonomous semi-trucks,
objectives of management for future operations of TuSimple Holdings Inc. and its subsidiaries (the "Company", “we”, “our” and “us”), market size and growth opportunities, competitive position and
technological and market trends, are forward-looking statements. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. In some
cases, you can identify forward-looking statements by terms such as “will”, “expect,” “plan,” “anticipate,” “intend,” “target,” “project,” “predict,” “potential,” “explore” or “continue” or the negative of these terms
or other similar words. The Company has based these forward-looking statements largely on its current expectations and assumptions and on information available as of the date of this letter. The Company
assumes no obligation to update any forward-looking statements after the date of this letter, except as required by law.
The forward-looking statements contained in this letter and the accompanying oral presentation are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause actual
results or outcomes to be materially different from any future results or outcomes expressed or implied by the forward-looking statements. These risks, uncertainties, assumptions and other factors include,
but are not limited to, those related to autonomous driving being an emerging technology, the Company’s limited operating history in a new market, the regulations governing autonomous vehicles, the
Company’s dependence on its senior management team, reliance on third-party suppliers, potential product liability or warranty claims and the protection of the Company’s intellectual property. Moreover,
the Company operates in a competitive and rapidly changing environment, and new risks may emerge from time to time. You should not put undue reliance on any forward-looking statements. Forward-
looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be
achieved, if at all. It is not possible for the Company to predict all risks, nor can the Company assess the impact of all factors on its business or the markets in which it operates or the extent to which any factor,
or combination of factors, may cause actual results or outcomes to differ materially from those contained in any forward-looking statements the Company may make.
You should carefully consider the foregoing factors and the other risks and uncertainties described under the caption “Risk Factors” in our final prospectus dated April 14, 2021 filed with the Securities and
Exchange Commission (the “SEC”) on April 16, 2021 and our other filings with the SEC, including our most recent quarterly report on Form 10-Q. These SEC filings identify and address other important risks and
uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. This letter also contains estimates, forecasts and other statistical data
relating to market size and growth and other industry data. These data involve a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. The Company has
not independently verified the statistical and other industry data generated by independent parties and contained in this letter and, accordingly, it cannot guarantee their accuracy or completeness. In
addition, assumptions and estimates of the Company’s future performance and the future performance of the markets in which the Company competes are necessarily subject to a high degree of uncertainty
and risk due to a variety of factors. These and other factors could cause results or outcomes to differ materially from those expressed in the estimates.
2021 @TuSimple, Inc. 2
1.
BUSINESS AND MARKET
HIGHLIGHTS
2021 @TuSimple, Inc. 3
~$4.0 trillion global truck freight
market is ripe for disruption
Through our Autonomous Freight
Network (AFN), TuSimple is
committed to bringing the most safe,
fuel-efficient & low-cost freight
capacity to market, combining the
best L4 autonomous technology,
hardware and go-to-market strategy
2021 @TuSimple, Inc. 4
COMPANY HISTORY
TUSIMPLE IS A LEADER IN AUTONOMOUS TRUCKING
Leading Technology | World-class Partners | $1.8Bn+ Funding to Date
Industry
Firsts
Founded Computer Vision World Champions CBS 60 Minutes Feature AV Reservation
2015 Broke 10 world records, ranking #1 at KITTI and CityScapes, the First to demonstrate a completely autonomous
most influential public leaderboard in autonomous driving ride in a semi-truck, featured on-air Program
6,775 reservations to-date
First Autonomous Driving
On-road Demo Company to Go Public
Demonstrates 1,000mm
perception breakthrough in
real-world demonstration Autonomous Paid
Freight Load
2018 and Earlier 2019 2020 2021
Begin Freight Operations Navistar Partnership Major OEM Partnership
Announced plans to develop purpose-built
With UPS and USPS, hauling freight between
L4 autonomous semi-trucks by 2024 Investment From a
distribution centers
Launch of AFN TRATON Partnership Major Carrier
Nvidia invests in 2016 Partnering with UPS, Already developing the first L4
Penske, U.S. Xpress and autonomous hub-to-hub truck freight Surface Street &
UPS Invests in 2019 McLane route in Sweden using Scania trucks Highway Driving
Series D Series E IPO
$400mm+ raised through various ~$1.35Bn public offering backed by
$165mm raised through various strategic, financial investors
strategic, financial investors blue chip anchor investors
Partners: Hardware Downstream
2021 @TuSimple, Inc. 5
THE TRUCK FREIGHT MARKET IN CONTEXT
GLOBAL TRUCK FREIGHT MARKET IS LARGE RELATIVE TO OTHER MARKETS THAT HAVE CREATED TECH GIANTS
$4 trillion
Global truck freight market(1) Global e-commerce: $3.5tn(2)
Global automotive : $2.8tn(3) Annual Revenue(8) | $348bn
Amazon Market Cap(9) | $1.5tn
$800 billion
U.S. truck freight market(4) Annual Revenue(8) | $28bn
• ~80% of total U.S. freight market Tesla Market Cap(9) | $641bn
• 3% CAGR from 1990-2018(5)
• ~2.3mm Class 8 semi-trucks(6)
• ~470bn total miles driven, annually(7)
Source: 1. Armstrong & Associates, Inc., 2019 Global Third-Party Logistics (3PL) Market Analysis 2. DigitalCommerce360 3. McKinsey & Company 4. American Trucking Associations, U.S. Freight Transportation Forecast 2019 to 2030 5. Bureau of
2021 @TuSimple, Inc. 6
Transportation Statistics, Table 1-35: U.S. Vehicle-Miles, September 2020 6. FMCSA 7. Assuming average revenue of $1.70 per mile. 8. Annual sales figures represent LTM sales as of latest filings. 9. As of March 10, 2021.
TRUCK FREIGHT INDUSTRY DYNAMICS
MIDDLE MILE COMPELLING USE CASE FOR LEVEL 4 …WITH LABOR REPRESENTING LARGEST COMPONENT
AUTONOMOUS DEPLOYMENT… OF PER MILE COST STRUCTURE(3)
Labor Costs Per mile cost % of total
$0.78 ~39%
10% of the nation’s
trade corridors
account for moving
nearly 80% of all
transported goods(2) $1.98 / mile
Other Operating Costs
Fuel, maintenance, insurance, etc.
FAF truck volume per day(1)
30k | 15k | 5k
$1.05 ~53%
Concentrated, makes up a majority of shipping routes
Fixed, predictable & well-traveled corridors
Ideally suited for Level 4 (L4) autonomy Operating Profit Incl. Labor $0.16 ~8%
Single digit margin limits
individual level of investment
Source: 1. U.S. DOT, Bureau of Transportation Statistics, Freight Analysis Framework. Freight Analysis Framework integrates data from various sources and is produced through a partnership between the Bureau of Transportation
2021 @TuSimple, Inc. Statistics and the Federal Highway Administration. 2. Brookings; A. Tomer and J. Kane, Mapping Freight: The Highly Concentrated Nature of Goods Trade in the United States, Metropolitan Policy Program at Brookings, November 2014. 7
3. Revenue assumes 2018 average dry van contracted rate per mile per DAT, figures rounded to the nearest $0.01.
FREIGHT CAPACITY SUPPLY-DEMAND IMBALANCE
INCREASED DEMAND FROM E-COMMERCE TRENDS FACED WITH A GROWING SHORTAGE OF DRIVERS & SAFETY ISSUES
Rising e-commerce penetration into retail
Increasing Trends such as same or next-day shipping
Demand
Diminishing
Driver turnover exceeding 100%+(1) Supply Insurance premiums are rising at a 5% CAGR(3)
Driver shortage expected to worsen 2.6 times by 2028(2) 40% increase in fatalities involving semi-trucks from 2009-2019(4)
2021 @TuSimple, Inc. Source: 1. ATRI: In strong economic periods. 2. ATA. 3. ATRI: From 2012-2018. 4. NHTSA: Passenger vehicle occupants killed in semi-truck collisions. 8
WHAT IT TAKES TO WIN
LEADING PROPRIETARY WORLD-CLASS HARDWARE SCALABLE GO-TO-MARKET
SOFTWARE PARTNERSHIPS STRATEGY
strengthened competitive position via aligned with some of the LARGEST
focused on addressing L4 SEMI-
CAPITAL LIGHT APPROACH, VERTICAL DISTRIBUTION NETWORKS ACROSS
TRUCK LONG HAUL terminal-to-
INTEGRATION & INCREASED CONTROL DIVERSE END MARKETS in North
terminal operations
resulting in reliable & scalable hardware America & abroad
Reliable L4 Driver-Out Autonomous Semi-Trucks at Scale Network Based Business
De-risks Adoption
TuSimple Has the Key Ingredients to Bring Safe, Reliable, Autonomous Freight Capacity to Market at Scale
2021 @TuSimple, Inc. 9
2.
CORE TECHNOLOGY
2021 @TuSimple, Inc. 10THE DNA OF TUSIMPLE: THREE PILLARS
1 Algorithm
3 Product
2 Infrastructure
1 2 3
Algorithm Infrastructure Product
The AI “magic” that The “big data” platform Define the sweet-spot on the
everyone talks about that fuels the AI spectrum of commercial
development viability and technical capability
2021 @TuSimple, Inc. 11L4 TECHNOLOGY TAILORED FOR COMMERCIAL TRUCKING
THE PERFECT BALANCE BETWEEN BUSINESS NEEDS AND TECHNICAL FEASIBILITY
L3 L4 L5
Conditional Automation High Automation Full Automation
On-ramp / Off-ramp TuSimple’s Solution “Go-anywhere” Trucks
Driver is a necessity, but is not required to monitor the The vehicle is capable of performing all driving functions The vehicle is capable of performing all driving functions
environment. The driver must be ready to take control of under certain conditions. The driver may have the option under all conditions. The driver may have the option to
the vehicle at all times with notice. to control the vehicle. control the vehicle.
Easy solution, includes a driver Operates in a defined domain reduces edge cases Requires significantly more complex technology to
achieve
Limited business use case in a TCO (total cost of Enables L4 autonomous driving terminal-to-
ownership) driven industry terminal, including surface street operation No additional business incentives for fleet
operation
Cannot navigate surface streets without a driver
Right Balance Among
TCO | Speed to Market | Feasibility
2021 @TuSimple, Inc. 12WE BELIEVE TRUCKING AUTONOMY ADOPTION IS FASTER THAN CAR
AUTONOMY ADOPTION
TECHNOLOGICAL ADVANTAGES OF AUTONOMOUS TRUCK
Fewer corner cases No human in the vehicle
• Highway focused operation • Cargo safety is a much easier topic than
• Clearly defined traffic rules passenger safety
• No requirement on the “comfort level”
Freedom to customize the Greater per-mile data density
network • High data density (i.e., amount of data accumulated
• Actively avoid school zones and other on the same route) eliminates corner cases
tricky traffic conditions • Very low latency of map update
• Lane operation is not contingent on full
feature completion
2021 @TuSimple, Inc. 13UNIQUE CHALLENGES OF L4 TRUCKING
THE OBVIOUS FACTS ABOUT TRUCKS
• Wide, long, heavy, high speed
THE NOT SO OBVIOUS FACTS
• Braking distance: 200 meters
• Lane change: 10 seconds
FUNDAMENTAL CHALLENGES FOR ALGORITHMS
• Requires farther perception range by a magnitude
• Out of the range of LiDAR sensors
• Requires longer planning horizon by a magnitude
• Typical sedan planner is by design not suitable for long planning horizon
• Requires more precise control accuracy by a magnitude
• Notoriously hard problems, even in academia
2021 @TuSimple, Inc. 14ADVANCED, PROPRIETARY SOFTWARE FOR SEMI-TRUCKS
FOCUSED ON THE SOLUTION FOR AUTONOMOUS FREIGHT
Enables: KPI Highlights (1) :
Exclusive Focus on Semi-Trucks Highway and surface
street driving
318
Patents
Camera-centric multi-
sensor architecture Speeds up to 75 mph
1,000m ultra-long range Ability to operate ~4.6MM
perception day and night Road Miles
35 second planning horizon Maneuver through
inclement weather
High precision control ~8,500
L4 terminal-to-terminal
operations Miles of Mapped Routes
2021 @TuSimple, Inc. Note: 1. As of June 2021 15UNDERSTANDING THE LONG-TAIL
WE BELIEVE THE LONG-TAIL OF CORNER CASES IS A SURMOUNTABLE PROBLEM
• Long-tail of corner cases is a famous
yet often misunderstood topic in
UNIQUE CASES
autonomous driving
• As miles driven in our operational
design domain increases, the number of
unique cases grows at a pace that is
expected to be achievable in near
future
MILEAGE
UNIQUE CASES TUSIMPLE
2021 @TuSimple, Inc. 16PROPRIETARY SOFTWARE
KEY TAKEAWAYS
Semi-trucks and Passenger Cars are Fundamentally Different
Problem Sets
We Believe Our Truck-Specific AI Framework is more Powerful
than Competitors’ Robo-taxi Framework
We Understand the Long-Tail and Believe That it is Within the
Reach of Today’s Technology
2021 @TuSimple, Inc. 173.
REGULATORY FRAMEWORK
AND INDUSTRY DYNAMICS
2021 @TuSimple, Inc. 18U.S. REGULATION IS AHEAD OF TECHNOLOGY, WITH VISIBILITY TO 50-
STATE UNIFIED AUTONOMOUS SEMI-TRUCK FRAMEWORK
Seattle
Portland
44
43 states
states
Minneapolis allow autonomous
semi-truck testing
Boston
Cleveland New York City
Salt Lake City
Chicago
Philadelphia
San Francisco Pittsburgh
/Oakland Cincinnati
Kansas City St. Louis
Denver
26 states
Norfolk
Nashville
Greensboro
Oklahoma City
Los Angeles Memphis
Phoenix Charlotte
/Long Beach
Tucson Atlanta allow autonomous semi-
San Diego El Paso Dallas truck commercial
deployment
Jacksonville
Orlando
San Antonio New Orleans
Houston
Tampa
Laredo
Terminal Expansion Plans Regulatory Landscape 50-state
Current Routes L4 Autonomous Commercial Operations cohesive AV operations
framework laid out in US DOT
Near-Term Expansion Plans [ 2021 ] L4 Autonomous Testing 4.0 AV Regulations
Future Expansion Plans [ 2022 – 2024] In Progress
2021 @TuSimple, Inc. Source: 1. Mapping Freight: The Highly Concentrated Nature of Goods Trade in the United States, Brookings 19TUSIMPLE SOLUTION ADDRESSES KEY USER PAIN POINTS
1 2 3
Capacity Shortage & Safety ESG
Costs • 94% of serious crashes • Medium and heavy duty
estimated to be due to trucks contribute 23% of U.S.
• Rising e-commerce penetration
human error(1) transportation GHG
into retail
• Insurance premiums are emissions(3)
• Persistent driver shortage limits
increasing at 5% CAGR(2)
capacity and increases costs
TuSimple Solution
Reduces driving More efficient fuel
Increases capacity,
usage translates
speed & flexibility of accidents and
to increased operating
system insurance costs savings
2021 @TuSimple, Inc. Source: 1. NHTSA. 2. ATRI. 3. EPA. 204.
FINANCIAL MODEL
FRAMEWORK
2021 @TuSimple, Inc. 21INNOVATION IS THE SOLUTION: TUSIMPLE AFN ENABLES NEW CAPACITY
Autonomous Freight Capacity as a Service:
Comprehensive, turnkey solution that supplies users with access to purpose-built L4 autonomous semi-trucks operating on
HD digital mapped routes nationwide
Reliable Freight Capacity On Demand
Carrier-Owned Capacity $ / mile Subscription Fee Provides reliable, continuous autonomous
• Purchase purpose-built L4 autonomous freight capacity as a service
semi-trucks through OEM Upfront Investment
• Subscribe to TuSimple Path to access AFN Controls Own Capacity
Uses Own Terminals
Safer
Mitigates human error (which cause 94%
of all serious accidents)(1)
Freight
Users
Greater Cost Efficiencies
Lower Total Cost of Ownership
TuSimple Capacity $ / mile Freight Rate
• Use purpose-built L4 autonomous semi- Capital Light Method
trucks operated by TuSimple to access AFN Uses Shared Capacity Lower Environmental Impact
Leverages Shared AFN Terminals Achieves 10% better fuel efficiency(2)
2021 @TuSimple, Inc. Source: 1. NHTSA. 2. UCSD Study. 22CARRIER-OWNED CAPACITY RESERVATION BOOK MOMENTUM
ROBUST TRUCK RESERVATIONS BY BLUE CHIP PARTNERS
17%
• As of June 2021, TuSimple has 6,775 reservations from blue chip
customers
6,775 reservations in
first stage of outreach • Represents our first stage of sale outreach to limited number of
sophisticated carriers and private fleets
53%
30% • Represents significant potential revenue annually and over
lifetime of truck
Carrier Rail / Intermodal Shipper / Parcel Carrier
Note: 1. Until customers enter into a purchase agreement, which is within the discretion of the customer, the reservation can be canceled and the customer is entitled to a full refund of its deposit. We have not entered into
2021 @TuSimple, Inc. 23
purchase agreements with any of our customers that have reserved our purpose-built L4 autonomous semi-trucks.SUBSTANTIAL GLOBAL TAM: RELATIVELY LOW PENETRATION COULD DRIVE
SUBSTANTIAL REVENUE BASE
Hardware Partner TAM(1) Go-To-Market Expected Launch Year
$800bn ~2.3MM TuSimple Capacity & Carrier- 2020 AFN Launch
TAM Class 8 Owned Capacity 2024 Commercial Production
United States Semi-trucks(2)
$1.7tn ~7.6MM TuSimple Capacity & Carrier-
2025 Commercial Production
TAM Heavy Duty Owned Capacity
China & Trucks(3)
Greater Asia
$400bn ~2.3MM
Technology License 2025 Launch
TAM Heavy Duty
Trucks(4)
Europe
2021 @TuSimple, Inc. Source: 1. Dollar TAM per Armstrong & Associates. 2. ACT Research. 3. China National Bureau of Statistics. 4. Eurostat 24TUSIMPLE IS THE LEADER IN
AUTONOMOUS TRUCKING
TuSimple Is Poised to Disrupt the TuSimple is a Leader in
estimated $4tn Global Freight Autonomous Freight with
Industry with L4 Autonomous Leading Proprietary Software,
Semi-Truck Technology Capable Hardware, and Go-to-Market
of Terminal to Terminal Capabilities
Operations
Winning Team and Partner Building the AFN Operations
Ecosystem to Develop a Reliable Today with Blue Chip Partners to
and Efficient Freight Capacity Ensure Adoption and Solidify
Solution Profitably at Scale Long Term Competitive Moat
2021 @TuSimple, Inc. 25DRIVING TOWARDS A SAFER AND MORE EFFICIENT FREIGHT PARADIGM 2021 @TuSimple, Inc. 26
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