Createai Holdings Inc. · OTC:TSPH
Createai — TuSimple Holdings — Investor Day (May 2022)
154 slides from Createai's investor day presentation, May 11, 2022
Slide 1: TuSimple 2022 Investor Day
TuSimple 2022 Investor Day May 11, 2022 | Investor Day 2022 1
Slide 2: Disclaimer
Disclaimer This presentation and any accompanying oral statements (together, this “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 of Tu
Slide 3: Agenda
Agenda 01 02 03 Welcome & Strategy Update AFN & Regulatory Update Fireside Chat: TuSimple & Werner Xiaodi Hou Jim Mullen Jim Mullen, Derek Leathers 04 05 06 China Market Update Technology Deep Dive TRATON Update Xiaodi Hou, Vince Verna, Ersin Yumer, Pat Dillon Pat Dillon and Adrian Thompson 07 08 09
Slide 4: Welcome
Welcome Welcome to the 2022 Investor Day: Click here or below to play video | Investor Day 2022 4
Slide 5: Welcome & Strategy Update
Welcome & Strategy Update Xiaodi Hou Co-Founder and CEO | Investor Day 2022 5
Slide 6: Autonomous Freight Network mission
Through our Autonomous Freight Network (AFN), TuSimple is committed to bringing safe, fuel- efficient & low-cost freight capacity to market combining the best L4 autonomous technology, hardware and go-to-market strategy. | Investor Day 2022 6
Slide 7: Our Progress Thus Far
Our Progress Thus Far Founded by Received Began Launched Announced Completed Autonomous Dr. Xiaodi Hou strategic autonomous Autonomous global partnership over 160,000 Domain and Mo Chen investment freight Freight to develop autonomous Controller from NVIDIA operations with Network autonomous miles f
Slide 8: Market Leading Development
Market Leading Development Our Autonomous Trucking Progress Thus Far: Click here or below to play video | Investor Day 2022 8
Slide 9: Massive TAM Opportunity With Secular Growth Drivers
Massive TAM Opportunity With Secular Growth Drivers Global Truck Freight Market: $4tn Global E-Commerce: $3.5tn Global Automotive: $2.8tn ~80% of total U.S. freight market 3% CAGR from 1990-2018 U.S. Truck Freight Market1 ~2.3mm Class 8 semi-trucks ~175bn miles driven, annually 1. American T
Slide 10: Massive TAM Opportunity With Secular Growth Drivers
Massive TAM Opportunity With Secular Growth Drivers Truck freight volumes in the U.S. are concentrated along a small number of corridors. Nearly 80% of truck freight goods hauled in the U.S. are moved via 10% of the nation’s trade corridors. Our current AFN routes alone have an estimated ~$10-13bn o
Slide 11: Industry Challenges Today Accelerates Adoption
Industry Challenges Today Accelerates Adoption Safety Driver Shortage Cost Environment 94% of all accidents are Current driver shortage Driver costs account for Medium and heavy-duty due to human error1 of 80,000; expected to ~45% of per-mile trucks contribute to 24% of double by 20302 operating cos
Slide 12: The Elements of AV Trucking Commercialization
The Elements of AV Trucking Commercialization Safety Efficiency Scale Driver Out Capability Improved Unit Economics Mass Production & Deployment | Investor Day 2022 12
Slide 13: Clear Global Leader in Autonomous Trucking Technology
Clear Global Leader in Autonomous Trucking Technology First and only fully autonomous driver out semi-truck runs on open public roads Highest number of road miles across autonomous trucking players We believe we have the most advanced L4 production semi-truck program Longest standing global OEM
Slide 14: Best-In-Class Hardware Partnerships
Best-In-Class Hardware Partnerships Steering Sensors Co-development of the Autonomous Powertrain Domain Controller (ADC) One Stop Solution Automotive-grade sensor interface High Performance Computing Redundant and Diagnostic Functions Brakes Tires | Investor Day 2022 14
Slide 15: Two Complementary Business Models
Two Complementary Business Models TuSimple Capacity Carrier-Owned Capacity Use purpose-built L4 Purchase purpose-built L4 autonomous semi-trucks Freight Users autonomous semi-trucks operated by TuSimple to through OEM and subscribe access AFN to TuSimple Path to access AFN $ / mile Freight Rate
Slide 16: Network-Based Approach Designed to Accelerate Flywheel Effect
Network-Based Approach Designed to Accelerate Flywheel Effect 4 1 Better user experience – More capacity, coverage, reliability, sustainability density and efficiency and lower cost – attracts customers 3 2 More autonomous More terminals trucks added to and routes network Speed to Market and Scalabl
Slide 17: Technology and Mission Aligned with ESG Principles
TuSimple’s Technology and Mission are Highly Aligned with ESG Principles Environmental Social Governance Studies and Recognition Workforce Diversity (U.S.) Board of Directors2 66% 22% 80% 13% fuel savings Ethnic Minority1 Female1 Independent 80.0% of Russell 3000 directors are independent3 Safety De
Slide 18: Strong Management Team Across All Functions
Strong Management Team Across All Functions Dr. Xiaodi Hou Jim Mullen Pat Dillon Isabella Zhou Co-Founder & CEO Chief Administrative and Legal Officer Chief Financial Officer Chief Human Resources Officer Jing Zhu Ersin Yumer Adrian Thompson Ruilang Zhang Vince Verna SVP, Software VP, Algorithm VP,
Slide 19: Experienced and Diverse Board
Experienced and Diverse Board 80% Dr. Xiaodi Hou Brad Buss Karen C. Francis Independent 80% of Russell 3000 Chair of the Board Lead Independent Director Independent Director directors are independent1 Chair of Audit Committee 20% Ethnic Minority 21% of Russell 3000 directors are ethnic minorities2 M
Slide 20: Autonomous Freight Network & Regulatory Update
Autonomous Freight Network & Regulatory Update Jim Mullen Chief Administrative & Legal Officer | Investor Day 2022 20
Slide 21: Our Autonomous Freight Network Ecosystem
Our Autonomous Freight Network Ecosystem Upstream Downstream Terminals Tires Carriers & 3PL Shipper/Parcel Roadside Assistance Rail Insurance TuSimple AFN Commercial Rental Telematics | Investor Day 2022 21
Slide 22: Building Deep Relationships with Our Partners
Building Deep Relationships with Our Partners We are focused on long-term lane adoption and deployment planning to allow for rapid scaling once implemented. Parcel Carrier Rail Shipper 3PL Completed over Integrated with Expanding our ODD to Delivered watermelons Loadsmith reserved 200,000 autonomous
Slide 23: AFN Expansion: Growing our Terminal Footprint
AFN Expansion: Growing our Terminal Footprint In preparation for our new driverless lanes and expansion of AV testing we are growing our terminal footprint “What we’re doing is automating the repetitive task of the middle mile and creating more first- and last-mile jobs so that drivers can be home n
Slide 24: States Explicitly Allow Driver Out AV Operations
26 States Explicitly Allow Driver Out AV Operations There is No State or Federal Rule Prohibiting Driver Out AV 44 states Allow Driver In AV 26 states Allow Driver Out AV Regulatory Landscape 50 states Allow Driver Out AV Cohesive AV operations framework laid out in AFN Network Expansion Plans1 US D
Slide 25: TuSimple is the Leader in AV Trucking
TuSimple is the Leader in AV Trucking AV Trucking is a Difficult and Complex Problem and TuSimple has a Focused and Fulsome Approach to Solving this Problem We Believe that No One has Technology as Advanced as Us, Measured by Our Achievements Our Technological Lead De-risks our Path to Commercializa
Slide 26: Fireside Chat: TuSimple & Werner Enterprises
Fireside Chat: TuSimple & Werner Enterprises Jim Mullen Derek Leathers Chief Administrative & Legal Officer, Chairman & CEO, TuSimple Werner Enterprises | Investor Day 2022 26
Slide 27: China Market Update
China Market Update Pat Dillon Chief Financial Officer | Investor Day 2022 27
Slide 28: TuSimple China at a Glance
TuSimple China at a Glance 400+ 270+ 500,000+ ~25 1,000 miles meter R&D professionals Issued Patents L4 Road Test Mileage Trucks in L4 Fleet Perception in China Capability Best-in-Class Hardware Partnerships | Investor Day 2022 28
Slide 29: Go-to-Market Strategy
Go-to-Market Strategy Massive Market Opportunity Product Offerings $1.3 Trillion L2+ Driver-In ADAS in Collaboration with NVIDIA Estimated China Road Freight Market in 20301 Building upon partnership with NVIDIA to provide integrated software and hardware for ADAS 6% CAGR solutions for the China mar
Slide 30: Commercialization Roadmap
Commercialization Roadmap 2022 2023 2024 2025 2025–2030 After 2030 By 2023: L2+ Driver-in ADAS Solution: Offer software & hardware full-stack solutions to OEMs By 2025: Build the first L4 autonomous truck freight route around the “Donghai Bridge” in Shanghai and expand the network to other core hubs
Slide 31: Shanghai Deepwater Port Project
Shanghai Deepwater Port Project Project Overview LuchaogStationang Railway World’s Largest Container Port Key hub for multimodal transport Logistics Park Donghai Bridge 20,000 Daily Freight Trips Container customs checkpoint Complex Port Environment Yangshan Deep-water Port Project principal: Only A
Slide 32: Technology Deep Dive
Technology Deep Dive Xiaodi Hou Co-Founder and CEO Vince Verna VP, Hardware Ersin Yumer VP, Algorithm Adrian Thompson VP, Systems & Safety Engineering | Investor Day 2022 32
Slide 33: Autonomous Technology Tree
Technology Deep Dive Autonomous Technology Tree We strongly believe there is only one path to achieve autonomy. | Investor Day 2022 33
Slide 34: Features
Features Main Driving Capabilities of the Autonomous System Easy to understand Richer features give the truck significant level of capability and reliability Advanced Feature Set is Step 1 for Driver Out | Investor Day 2022 34
Slide 35: Redundancies
Redundancies Be prepared for rare cases! What if there is a failure? ▪ Driver-in: disengagement! ▪ Driver-out: a mitigation plan designed into the system itself Redundancy = Hardware + Software Redundancy is Step 2 for Driver Out | Investor Day 2022 35
Slide 36: Validation
Validation Validation is the purpose, simulation or road tests are means Hypothesize possible failures of the system Test that the redundancy is implemented Validate the system: Engine, steering, braking Power, in-vehicle network Sensor, server OS, algorithm Validation is Step 3 for Dr
Slide 37: Driver Out
Driver Out Talk is cheap, show the evidence The key is to remove the reliance on human driver ▪ Not every single disengagement is important, but some are ▪ We will not compromise safety ▪ How to prove that you’re ready? DRIVER OUT Driver Out Operation Is the Key Proofpoint on the Path to Commercia
Slide 38: Cost Efficiency
Cost Efficiency Autonomy technology does not come for free One-time cost Recurring cost Equipment maintenance Map update, tele-operation, etc. Autonomy Cost Must Be Optimized to Have Market Acceptance | Investor Day 2022 38
Slide 39: Cost Efficiency
Cost Efficiency Autonomy Cost Must Be Optimized to Have Market Acceptance | Investor Day 2022 39
Slide 40: Feature: Advanced Planning
Technology Deep Dive Feature: Advanced Planning “A superior pilot uses his superior judgment to avoid situations which require the use of his superior skill” - Frank Borman, Retired NASA Astronaut | Investor Day 2022 40
Slide 41: From Maneuvers to Mini-Maneuvers
From Maneuvers to Mini-Maneuvers Maneuver: Safety Shift ▪ Braking, accelerating ▪ Making turns ▪ Lane changing and yielding Handling Aggressive Cut-in Mini-Maneuver: ▪ Defensive driving to avoid risks ▪ Road etiquette compliance Proactive Lane ▪ Subtle driving techniques that improve efficiency Chan
Slide 42: Safety Shift
Safety Shift Scenario: Adjacent vehicle invades our lane Why Is This Hard? ▪ Complexity of all traffic scenarios ▪ Fine-grained perception of scene & actors ▪ Precise vehicle control | Investor Day 2022 42
Slide 43: Autonomous Truck Safety Shift video
Autonomous Truck Safety Shift: Safety Shift Click here or below to play video | Investor Day 2022 43
Slide 44: Autonomous Safety Shift 4x video
Autonomous Safety Shift 4x: Safety Shift Click here or below to play video | Investor Day 2022 44
Slide 45: Handling Aggressive Cut-in
Handling Aggressive Cut-in Scenario: Avoid collision without overbraking Why Is This Hard? ▪ Predicting cut-in vehicle distance ▪ Predicting cut-in vehicle speed ▪ Maintain safe distance ▪ No braking overreaction | Investor Day 2022 45
Slide 46: Handling Aggressive Cut-in video
Handling Aggressive Cut-in: Handling Aggressive Cut-in Click here or below to play video | Investor Day 2022 46
Slide 47: Handling Aggressive Cut-in (4x) video
Handling Aggressive Cut-in Handling Aggressive Cut-in (4x): Click here or below to play video | Investor Day 2022 47
Slide 48: Proactive Lane Change
Proactive Lane Change Scenario: Proactively seek safest travel lane Why Is This Hard? ▪ Predict future unsafe merging events by others ▪ Predict where opening will emerge ▪ Real-time decision in complex traffic ▪ Interactive negotiation with other vehicles | Investor Day 2022 48
Slide 49: Proactive Lane Change video
Proactive Lane Change Proactive Lane Change: Click here or below to play video | Investor Day 2022 49
Slide 50: Proactive Lane Change 4x video
Proactive Lane Change Proactive Lane Change 4x: Click here or below to play video | Investor Day 2022 50
Slide 51: Feature: Advanced Control
Technology Deep Dive Feature: Advanced Control Surpassing human level maneuvering | Investor Day 2022 51
Slide 52: Driving a Truck is Challenging
Driving a Truck is Challenging ▪ Wide body ▪ Wide body ▪ Gear shifting latency ▪ Gear shifting latency ▪ Trailer weight ▪ Trailer weight ▪ Turning radius ▪ Turning radius Unique Design Challenges for Autonomous Trucking | Investor Day 2022 52
Slide 53: A Glance at TuSimple's Control Performance
A Glance at TuSimple’s Control Performance Avg. Lane Centering Accuracy 8 inches (2.4x better than human) Avg. Stopping Accuracy 8 inches The Goal of Autonomy is to Surpass Human-level Maneuvering Note: All data collection and analysis based on trucks with trailers containing real-world cargo. | Inv
Slide 54: Competitive Advantage #1: Advanced Interfaces
Competitive Advantage #1: Advanced Interfaces Basic torque control Fully-integrated torque functionality control Current TuSimple Engagement TuSimple is Paving the Way with Tier 1 Suppliers | Investor Day 2022 54
Slide 55: Cummins + TuSimple
Cummins + TuSimple Advanced Interface Collaboration Necessary for Driver Out Limited Autonomy Driver Out Capable Advanced Features Advanced Autonomy Basic torque control Fully-integrated Remote reverse, Fuel functionality torque control neutral, drive optimization STATUS: RELEASED STATUS: RELEASED S
Slide 56: Competitive Advantage #2: Algorithm Breakthrough
Competitive Advantage #2: Algorithm Breakthrough From Passive To Predictive Control Predictive Control ▪ Massive control dynamics modeling ▪ TuSimple’s autonomous driver → vehicle handling “intuition” ▪ Improved safety and fuel efficiency | Investor Day 2022 56
Slide 57: Fuel Efficiency
Fuel Efficiency Speed limit and traffic laws are adhered to | Investor Day 2022 57
Slide 58: Feature: Advanced Perception
Technology Deep Dive Feature: Advanced Perception | Investor Day 2022 58
Slide 59: Sensors: Camera, LiDAR, Radar
Sensors Camera LiDAR Radar | Investor Day 2022 59
Slide 60: Understanding Perception
Understanding Perception How does the truck “see”? ▪ Cameras, LiDARs, and radars ▪ Deep learning perception algorithms ▪ Both powerful & robust | Investor Day 2022 60
Slide 61: Multi-Level Perception: Pixels
Multi-Level Perception: Pixels Multi-level Perception Pixels: Click here or below to play video | Investor Day 2022 61
Slide 62: Multi-Level Perception: Objects
Multi-Level Perception: Objects Multi-level Perception Objects: Click here or below to play video | Investor Day 2022 62
Slide 63: Multi-Level Perception: Scenes
Multi-Level Perception: Scenes Multi-level Perception Scenes: Click here or below to play video | Investor Day 2022 63
Slide 64: Case Study: Detecting Pedestrians on the Road
Case Study: Detecting Pedestrians on the Road | Investor Day 2022 64
Slide 65: Camera Perception
Camera Perception Pedestrian Detection Daytime: Click here or below to play video | Investor Day 2022 65
Slide 66: Unknown Objects
Unknown Objects Pedestrian Detection Nighttime Click here or below to play video | Investor Day 2022 66
Slide 67: Occupancy Grids
Occupancy Grids Pedestrian Detection Occupancy Grid: Click here or below to play video | Investor Day 2022 67
Slide 68: Generalization: Roadside Cars
Generalization: Roadside Cars Roadside Car Detection: Click here or below to play video | Investor Day 2022 68
Slide 69: Redundancy: Hardware Ruggedization
Technology Deep Dive Redundancy: Hardware Ruggedization Vince Verna VP, Hardware | Investor Day 2022 69
Slide 70: Driver Out Requires Hardware Ruggedization
Driver Out Requires Hardware Ruggedization Standard OEM Truck Platform Hardware Failures Autonomy Hardware Chassis Components Electrical Cameras, LiDARs, Radars Steering, Braking Power, Networks, Signals Compute Unit Standard OEM Platform Hardware is Not Driver Out Ready | Investor Day 2022 70
Slide 71: Improving the OEM Truck Platform
Improving the OEM Truck Platform Hardware Engineering: Systematically improving a platform truck’s capability Mechanical Engineering Electrical Engineering Testing Perception Housing Electronic Control Units Vibration Table TuSimple’s Hardware Team Apply Their Automotive Expertise to Improving Our P
Slide 72: Network Communication CAN Bus Ruggedization
Network Communication “CAN Bus” Ruggedization Example of a CAN fault to the brake controller The CAN Bus can be subject to failures like: ▪ Short circuits ▪ Broken wires ▪ Corrupted data TuSimple Identified CAN Improved Reliability Requirements | Investor Day 2022 72
Slide 73: CAN Bus Ruggedization (cont.)
CAN Bus Ruggedization (cont.) TuSimple’s solution CAN Bus Distribution Board Spare CAN Robust board- connections for to-board testing and R&D connectors Improved Hardware Integrity Reduces CAN Faults and Improves System Diagnostics | Investor Day 2022 73
Slide 74: Power Ruggedization
Power Ruggedization Loose cable Power Loss is a severe fault ▪ Preventing power loss prevents system shut down Standard OEM Architectures Lack the Redundancy and Safety Required for AV Systems | Investor Day 2022 74
Slide 75: Power Ruggedization (cont.)
Power Ruggedization (cont.) TuSimple’s solution In-house designed power electronics Without With TuSimple Power TuSimple Power Electronics Electronics TuSimple’s Proprietary Power Electronics Protect Against Power Loss | Investor Day 2022 75
Slide 76: Hardware Validation
Hardware Validation Design verification of components before they are installed on trucks Components must pass vehicle testing standards before install V-Development process Vehicle Testing - CISPR 12 Increases our confidence in - CISPR 25 components at every step before - ISO 11451-2 they are put o
Slide 77: Hardware Validation of the Power Bridge (PBR)
Hardware Validation of the Power Bridge (PBR) Progressive testing sequence Component Testing Each Level of Testing Must Be Passed Before Progressing to the Next Higher Level | Investor Day 2022 77
Slide 78: Hardware Validation of the Power Bridge (PBR)
Hardware Validation of the Power Bridge (PBR) Progressive testing sequence Component Testing Subsystem Testing Each Level of Testing Must Be Passed Before Progressing to the Next Higher Level | Investor Day 2022 78
Slide 79: Hardware Validation of the Power Bridge (PBR)
Hardware Validation of the Power Bridge (PBR) Progressive testing sequence Component Testing Subsystem Testing System Testing Each Level of Testing Must Be Passed Before Progressing to the Next Higher Level | Investor Day 2022 79
Slide 80: Hardware Validation of the Power Bridge (PBR)
Hardware Validation of the Power Bridge (PBR) Progressive testing sequence Component Testing Subsystem Testing System Testing Vehicle Testing Each Level of Testing Must Be Passed Before Progressing to the Next Higher Level | Investor Day 2022 80
Slide 81: Hardware Validation - Vehicle Testing Examples
Hardware Validation - Vehicle Testing Examples Data driven validation Process Example 1 Issue Triage CAN Network Communication Errors: Caused disengagements Problem Solving Root Cause: Resistor termination Change Control Change Control: Electrical parts re-designed & released for future builds Curre
Slide 82: Hardware Validation - Vehicle Testing Examples
Hardware Validation - Vehicle Testing Examples Data driven validation Process Example 1 Example 2 Issue Triage CAN Network Communication Errors: LiDAR Arm Weld Failure Caused disengagements Problem Solving Root Cause: Root Cause: Resistor termination Incomplete weld penetration Change Control Change
Slide 83: Hardware Validation - Vehicle Testing Examples
Hardware Validation - Vehicle Testing Examples Data driven validation Continuous reliability Process improvements and 100’s of Issues Triaged Per cost reductions! Issue Triage Quarter Turned into Dozens of Problem Solving Projects Change Control $ of Cost Per Mile Reduction Current Hardware Cost Per
Slide 84: Knowledge Transfer from Retrofit to Production Truck
Knowledge Transfer from Retrofit to Production Truck Ruggedization ■ Autonomy Hardware ■ Chassis Components ■ Electrical TuSimple Provides All Key Learning and Ruggedization to Our OEM Partners | Investor Day 2022 84
Slide 85: Validation: Simulation
Technology Deep Dive Validation: Simulation Ersin Yumer VP, Algorithm | Investor Day 2022 85
Slide 86: Simulation miles for 1 road test mile
simulation miles for 1 road test mile* | Investor Day 2022 *average for year 2022 86
Slide 87: Let's Watch a Truck Drive
Let’s Watch a Truck Drive… Let's Watch an Autonomous Truck Drive: Click here or below to play video | Investor Day 2022 87
Slide 88: Not Every Mile Driven is the Same
Not Every Mile Driven is the Same Boring miles Interesting miles No dynamic objects Other dynamic objects No interactions Vehicles Only minor steering/control action is needed Vulnerable road users (pedestrians, bikes, …) Driving on a straight line Precise steering and control needs
Slide 89: Simulation miles for road test mile
simulation miles for 1 road test mile* | Investor Day 2022 *average for year 2022 89
Slide 90: TuSimple Simulation Ecosystem
TuSimple Simulation Ecosystem Driving Data Sim from Real Regeneration ReSim Auto Triage Manual Triage Product/Safety Sim Craft Planning a Sim Requirements Meta Sim | Investor Day 2022 90
Slide 91: TuSimple Simulation Ecosystem
TuSimple Simulation Ecosystem Driving Data Sim from Real Regeneration ReSim Auto Triage Manual Triage Product/Safety Sim Craft Planning a Sim Requirements Meta Sim | Investor Day 2022 91
Slide 92: TuSimple Simulation Ecosystem
TuSimple Simulation Ecosystem Driving Data Sim from Real Regeneration ReSim Auto Triage Manual Triage Product/Safety Sim Craft Planning a Sim Requirements Meta Sim | Investor Day 2022 92
Slide 93: TuSimple Simulation Ecosystem
TuSimple Simulation Ecosystem Driving Data Sim from Real Regeneration ReSim Auto Triage Manual Triage Product/Safety Sim Craft Planning a Sim Requirements Meta Sim | Investor Day 2022 93
Slide 94: Regeneration: Before
Regeneration:Before Regeneration Before: Click here or below to play video | Investor Day 2022 96
Slide 95: Before / After
Before After | Investor Day 2022 97
Slide 96: Case Study: A Typical Merge Example
Case Study: A Typical Merge Example A Typical Merge Example: Click here or below to play video | Investor Day 2022 96
Slide 97: TuSimple Simulation Ecosystem
TuSimple Simulation Ecosystem Driving Data Sim from Real Regeneration ReSim Auto Triage Manual Triage Product/Safety Sim Craft Planning a Sim Requirements Meta Sim | Investor Day 2022 97
Slide 98: TuSimple Simulation Ecosystem
TuSimple Simulation Ecosystem Driving Data Sim from Real Regeneration ReSim Auto Triage Manual Triage Product/Safety Sim Craft Planning a Sim Requirements Meta Sim | Investor Day 2022 98
Slide 99: Resim Step 1: Regeneration
Resim: Step 1 – Regeneration (New Perception Results) Resim Step 1: Regeneration: Click here or above to play video | Investor Day 2022 99
Slide 100: Resim Step 2: Simulation with New Perception Results
Resim: Step 2 – Simulation with New Perception Results Resim: Step 2 Simulation with New Perception Results: Click here or to the left to play video | Investor Day 2022 100
Slide 101: Another Typical Case: Pedestrians on the Shoulder
Another Typical Case: Pedestrians on the Shoulder Pedestrians on the Shoulder: Click here or above to play video | Investor Day 2022 101
Slide 102: Resim: Simulation with Existing Perception Results
Resim: Simulation with Existing Perception Results Simulation with Existing Perception Results: Click here or to the left to play video | Investor Day 2022 102
Slide 103: TuSimple Simulation Ecosystem
TuSimple Simulation Ecosystem Driving Data Sim from Real Regeneration ReSim Auto Triage Manual Triage Product/Safety Sim Craft Planning a Sim Requirements Meta Sim | Investor Day 2022 103
Slide 104: TuSimple Simulation Ecosystem
TuSimple Simulation Ecosystem Driving Data Sim from Real Regeneration ReSim Auto Triage Manual Triage Product/Safety Sim Craft Planning a Sim Requirements Meta Sim | Investor Day 2022 104
Slide 105: Simcraft: Product/Safety Requirements
Simcraft: Product/Safety Requirements Product Safety Requirements (Video 2): Click here or below to play video Product Safety Requirements (Video 1): Click here or above to play video Properties of a scenario from requirement: 1. EGO merges into the highway in front of a truck 2. NCD close cuts in f
Slide 106: TuSimple Simulation Ecosystem
TuSimple Simulation Ecosystem Driving Data Sim from Real Regeneration ReSim Auto Triage Manual Triage Product/Safety Sim Craft Planning a Sim Requirements Meta Sim | Investor Day 2022 106
Slide 107: TuSimple Simulation Ecosystem
TuSimple Simulation Ecosystem Driving Data Sim from Real Regeneration ReSim Auto Triage Manual Triage Product/Safety Sim Craft Planning a Sim Requirements Meta Sim | Investor Day 2022 107
Slide 108: TuSimple Simulation Ecosystem
TuSimple Simulation Ecosystem Driving Data Sim from Real Regeneration ReSim Auto Triage Manual Triage Product/Safety Sim Craft Planning a Sim Requirements Meta Sim | Investor Day 2022 108
Slide 109: TuSimple Simulation Ecosystem
TuSimple Simulation Ecosystem Driving Data Sim from Real Regeneration ReSim Auto Triage Manual Triage Product/Safety Sim Craft Planning a Sim Requirements Meta Sim | Investor Day 2022 109
Slide 110: Safety Case: Virtual Runs
Safety Case: Virtual Runs Rapid virtual ADS experience in addition to road tests to build validation confidence • 10M+ miles per 24h in simulation • Auto event candidate detection: • 100% recall of critical cases • Auto-triage: • High confidence results for 90+% cases • Manual-triage for: • Low conf
Slide 111: Validation: Systems Safety
Technology Deep Dive Validation: Systems Safety Adrian Thompson VP, Systems & Safety Engineering | Investor Day 2022 111
Slide 112: Safety for Class 8 Trucks is a Unique Challenge
Safety for Class 8 Trucks is a Unique Challenge AV Trucks Need Higher Standards 80,000 lbs fully loaded Hundreds of meters to stop Jack-knife risk Highway speeds Dynamic traffic and bad actors Steep grade surfaces Cross-winds and weather Lost lines - Network frame drops Must Design for
Slide 113: TuSimple's Safety Approach is Holistic
TuSimple’s Safety Approach is Holistic Not just about the AV Truck Entire AV operation must be safe Covers: Base truck platform Autonomous Driving System (ADS) Remote monitoring network Maintenance and “Pre-Flight” checks Lost lines - Network frame drops Safety Culture TuSimple’s Approac
Slide 114: TuSimple Aims to Solve Lack of Unified Standards
TuSimple Aims to Solve Lack of Unified Standards ISO 21448 DO-178 MIL- IEC STD- 61508 882 ISO 26262 DO-254 There isn’t a standard that adequately Relevant Safety covers safety for Autonomous Trucking. This Standards required us to take the best practices of SAE UL J3168 4600 adjacent industries comb
Slide 115: TuSimple Safety Framework
TuSimple Safety Framework Combining all safety practices results in the TuSimple Safety Framework. Meeting the safety performance measures in this framework proves readiness for Driver Out operations. TuSimple Safety Framework Reliability Fail-Safe Sufficient Proven (robust design) (functional safet
Slide 116: Hierarchical Validation
Hierarchical Validation We prove safety standards are met at the component, subsystem, system, and full-solution levels. We do not integrate elements unless each one is individually proven to meet safety standards. Component Testing Subsystem Testing System Testing Vehicle Testing Multi-level Valida
Slide 117: Improved Safety Through Adversarial Testing
Improved Safety Through “Adversarial Testing” An independent team conducts adversarial testing to find weaknesses in the solution and holds the rest of the company accountable to fix them. “Adversarial Testing” Hardens the Solution Against Unforeseen Weaknesses | Investor Day 2022 117
Slide 118: Fail-Safe Case Study 1: Redundant Steering
Fail-Safe Case Study 1: Redundant Steering Source: Failure Modes Effects Analysis Goal: Maintain Directional Control During a Failure Challenge: Redundant steering control needed for safety Key Requirements: Safe steering handoff @ 65 mph Transfer control within 6 feet of travel (~60ms) Highly R
Slide 119: Fail-Safe Case Study 2: Redundant Localization
Fail-Safe Case Study 2: Redundant Localization Source: Fault Tree Analysis Goal: Precise Position and Orientation tracking throughout the mission Challenge: Sparse landmarks, visual indicators, and GPS signals vary throughout the current I-10 route in Arizona Key Requirements: Capable of operating
Slide 120: TuSimple's Commitment to Safety
TuSimple’s Commitment to Safety TuSimple: sets the standard for Class 8 Level 4 Autonomy Holistic and comprehensive Safety Case Framework TuSimple has built a world-class Systems & Safety Engineering organization Independent and rigorous verification process Safety Case continuously updated Tu
Slide 121: TRATON Partnership Update
TRATON Partnership Update Pat Dillon Chief Financial Officer | Investor Day 2022 121
Slide 122: Navistar partnership quote
“At Navistar, we are excited to continue building our partnership with TuSimple to develop the world’s first autonomous semi-truck. We believe our collaboration will make freight transportation safer, more environmentally friendly and more cost efficient. “ - Srini Gowda Vice President - Autonomous
Slide 123: TuSimple & Navistar Partnership
TuSimple & Navistar Partnership TuSimple NavistarPartnership: Click here or below to play video | Investor Day 2022 13 123
Slide 124: Navistar Production Progress Update
Navistar Production Progress Update United States Latest Agreed Upon Timeline Production-Intent Fully Integrated Carrier-owned Bill of Materials Production Facility Prototype Vehicles Vehicles Capacity H1 2022 H1 2022 2024 2025 2026 Significant progress on Selected Escobedo, Production-intent
Slide 125: TRATON Europe Partnership
TRATON Europe Partnership Europe Partnership Summary Near-term Milestones Announced in September 2020 Completion of L4 hub-to-hub route in Sweden TRATON selected for its global reach which allows for rapid scaling & Additional Driver Out projects adoption across Europe The Scania brand is
Slide 126: Driver Out and Path to Commercialization
Driver Out and Path to Commercialization Xiaodi Hou Co-Founder and CEO Pat Dillon Chief Financial Officer | Investor Day 2022 126
Slide 127: The Path to Commercializing AV Technology
The Path to Commercializing AV Technology Safety: Ability to Operate Driverless Runs Safely on Open Public Roads Accomplished Starting 2021 with Certain Precautions Efficiency: Ruggedization of Our Technology and Hardware to Increase Productivity Near-term Focus Scale: Production Truck Program to Sc
Slide 128: The Path to Commercializing AV Technology
The Path to Commercializing AV Technology What does Commercialization Mean? Safety Accomplished Starting 2021 1.1 Market Freight Rates for Service with Certain Precautions Commercialization Planned by 2023 Efficiency 1.2 Continuous Operations on Real Freight Lanes and Requires Efficiency Near-term F
Slide 129: The Evolution of TuSimple Driver Out Operations
The Evolution of TuSimple Driver Out Operations 2021 2022 2023 2024 2025 2026 Driver Out Testing Driver Out Commercial Runs Driver Out Uncompetitive with Competitive with Significant Cost Operating Cost Human Operation Human Operation Advantage Number of Driver ~10 10’s 100’s 1,000’s Out Trucks Full
Slide 130: Initially Focused on High-Value, Dense Freight Routes
Initially Focused on High-Value, Dense Freight Routes Initial Driver Out Commercial Operations Routes Hauling real customer freight, building upon our existing announcements to haul driverless freight for Union Pacific Systematically adding routes based on customer demand and lane density Expert
Slide 131: How Do You Measure Efficiency?
How Do You Measure Efficiency? Human-Operated Truck Baseline Driver Out AV Truck Costs Vs. Cost of Operation: P All Ongoing Operating ~$2.50 / Mile1 Costs for AV Operations O True Development Costs 1. Estimate based on data from ATRI and NPTC. | Investor Day 2022 131
Slide 132: A Comparison of the Operating Cost Structure
A Comparison of the Operating Cost Structure AV Cost Elements Other Other • Insurance • Tolls No difference • Permits Fuel Fuel • ~10% fuel economy improvement Maintenance Maintenance Vehicle • Base vehicle maintenance • AV hardware maintenance Incremental • Calibration & AV rescue AV Vehicle Human
Slide 133: Driver Out is the Starting Point on Path to Commercialization
Driver Out is the Starting Point on Path to Commercialization AV Trucking Robotaxi Driverless No Teleoperation Safety Driver More Complex Vehicle Less Complex Vehicle More Defined ODD More Expansive ODD Note: Based on Company disclosure. | Investor Day 2022 133
Slide 134: Driver Out: Evolution from Today to Initial Commercialization
Driver Out: Evolution from Today to Initial Commercialization Today End of 2023 Configuration Autonomous Autonomous Chase Van Truck Survey Vehicle Truck No Support No Support Vehicles Vehicles Night Operations Day and Night Operations Limited Availability Expanded Availability to Support Cus
Slide 135: Current Driver Out Configuration
Current Driver Out Configuration Unmarked Law Enforcement Chase Van Autonomous Survey Truck Vehicle 1/4 to 1/2 mile 1/2 to 1 mile 5 to 6 miles Survey Vehicle and Chase Van provide no remote control nor environmental influence Removing the Survey Vehicle and Chase Van reduces the Cost per Mile by
Slide 136: Driver Out for Commercial Operations
Driver Out for Commercial Operations Removing Support Vehicles Chase Van Autonomous Autonomous Truck Truck Remove Chase Van: Replacing Survey Vehicle: Increased reliability of hardware Truck density on routes Roadside assistance program Full suite of MRC capabilities Vehicle oversight comm
Slide 137: Minimal Risk Condition (MRC)
Minimal Risk Condition (MRC) Configuration: Autonomous Truck ▪ Unsafe conditions detected ▪ Identify MRC zone ▪ Safely pull over and stop | Investor Day 2022 137
Slide 138: Minimal Risk Condition video
Minimal Risk Condition: Minimal Risk Condition Click here or below to play video | Investor Day 2022 138
Slide 139: Estimated Path to Improve Our Unit Economics
Estimated Path to Improve Our Unit Economics Cost per Mile Evolution Today End of 2023 ~2025 $35-40 80%+ Reduction 95% Reduction Clear Line of Parity Milestone Expected (3 hours 12 Sight to Parity Between 2024 and 2025 hours / day) Increase ratio of trucks to monitoring personnel ~40% Improvement
Slide 140: Cost per Mile Elements
Cost per Mile Elements Support Vehicle Cost Cost per Mile Evolution ($/mile) Cost Structure Elements $35-40 Support Vehicle Cost o Support vehicle, equipment, personnel, and fuel cost removed Operating Cost 2-3 before Initial Commercial Operations through full suite of MRC capabilities and more ro
Slide 141: Cost per Mile Elements
Cost per Mile Elements Virtual Driver Cost Cost per Mile Evolution ($/mile) Cost Structure Elements $35-40 Support Vehicle Cost Operating Cost 2-3 Virtual Driver Cost o Mapping maintenance cost decreases as individual truck utilization and network density increases Vehicle Cost 2-4 o Data storag
Slide 142: Cost per Mile Elements
Cost per Mile Elements Vehicle Cost Cost per Mile Evolution ($/mile) Cost Structure Elements $35-40 Support Vehicle Cost Operating Cost 2-3 Virtual Driver Cost Vehicle Cost Vehicle Cost 2-4 o Vehicle cost decreases as utilization increases o Significant reduction in AV-related hardware cost th
Slide 143: Vehicle Cost Reduction Detail
Vehicle Cost Reduction Detail ~50% Reduction Driver Out Vehicle Cost — Purpose-built Autonomous Automotive Grade Economies of Scale from Estimated Production Truck Today Domain Controller Co- Components for Braking, OEM Global Procurement Vehicle Cost Developed with NVIDIA Steering, LiDAR and Proces
Slide 144: Cost per Mile Elements
Cost per Mile Elements Other Operating Costs Cost per Mile Evolution ($/mile) Cost Structure Elements $35-40 Support Vehicle Cost Operating Cost 2-3 Virtual Driver Cost Vehicle Cost Vehicle Cost 2-4 Operating Cost o Constant through Evolution Virtual Driver Cost 4-6 o Permits & Licenses (per
Slide 145: Tracking Commercialization Progress
Tracking Commercialization Progress Routes Regular Update Fleet Size of Driver Out Trucks Regular Update Customer Participation in Driver Out Freight Updates on Ad-Hoc Basis Updates on Key Milestones on Ad-Hoc Basis Generations of Hardware Interlinked with Production Truck Program Operational Cost p
Slide 146: Financial Update
Financial Update Pat Dillon Chief Financial Officer | Investor Day 2022 146
Slide 147: Complementary Business Models
Complementary Business Models United States Europe China TAM1 $800bn $400bn $750bn Technology License ADAS Solutions TuSimple Capacity Capital Light TuSimple Capacity Go-to-Market Carrier-Owned Capacity Principal Network Carrier-Owned Capacity Responsibility with TRATON 1. Industry r
Slide 148: Illustrative U.S. Unit Economics – At Scale
Illustrative U.S. Unit Economics – At Scale Potential Annual Revenue for TuSimple per Truck $2.25-2.50 Revenue per Mile $337K-562K Annual Revenue 150K-225K TuSimple Capacity TuSimple Capacity Miles Per Year $0.45-0.65 Revenue per Mile $67K-146K Annual Revenue Carrier-Owned Capacity Carrier-Owned Cap
Slide 149: Significant Network Scaling
Significant Network Scaling Average Target Trucks on AFN U.S. 3-4x 50,000-55,000 Rest of World 7-8x 15,000-18,000 2,000-2,500 1,300-1,700 12,000-14,000 40,000-45,000 2026 2028 2030 Mix of Trucks by Business Model on U.S. AFN 2026 2028 2030 TuSimple Capacity Carrier-Owned Capacity | Investor Day 2022
Slide 150: Long Term Revenue Targets
Long Term Revenue Targets Target Revenue 40% Gross Margin 35% Adj. EBITDA Margin 3-4x $10.0-12.0bn U.S. Rest of World 5-6x $3.0-4.0bn $0.5-0.8bn $0.3-0.5bn $2.0-2.7bn $7.0-8.5bn 2026 2028 2030 Approx. U.S., EU, and China <0.1% 0.2% 0.5% Market Penetration Approx. U.S. Market 0.1% 0.3% 1.0% Penetrati
Slide 151: Closing Remarks
Closing Remarks Xiaodi Hou Co-Founder and CEO | Investor Day 2022 151
Slide 152: Takeaways
Takeaways TuSimple Is the AV Technology Leader Focused approach on trucking since 2015 First to develop a “Driver Out” framework TuSimple Is at the 2nd Episode of the Trilogy Rapidly reducing cost of “Driver Out” operations Re-applying our “Driver Out” framework to new ODDs | Investor Day 20
Slide 153: Takeaways
Takeaways 1st to safe driver out & Speed commercial viability 1st mover advantage Scalable & cost- Scale efficient technology Strong margin profile Full AFN with deep Highly defensible long- Network customer integration term business model | Investor Day 2022 153
Slide 154: Investor Day 2022
NI N 8 id > ple | Investor Day tu|sim