Aurora Raises $483 Million Amid Continued Efforts for Its Self-Driving Trucks

Aug 06, 2024 11:33 PM EDT

Aurora Innovation has raised its secondary stock ahead of its driverless truck's official launch.

Automotive News reported Monday that Aurora has raised $483 million in its secondary stock offering. The funding aims to increase its capital ahead of its driverless truck's commercial launch by the end of 2024.

The raise is an opportunity for the company's smooth financial runway into 2026, as it plans to deploy driverless trucks at scale. It will also set Aurora Innovation as a "cash flow positive" company by 2028.

Aurora reportedly sold 134,166,667 shares of its Class A common stock at $3.60 per share, according to a company press release.

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Goldman Sachs & Co. LLC, Allen & Company LLC and Morgan Stanley acted as the offer's book-running managers. Meanwhile, Evercore ISI, Canaccord Genuity, TD Cowen and Wolfe | Nomura Alliance served as bookrunners.

According to a 2021 study from KMPG, automotive executives expect a transformation of the automotive sector. Aurora started this by developing autonomous technology for light vehicles. Eventually, the company shifted to self-driving trucks.

Chris Urmson, Aurora CEO, shared his vision about the efficiency of driverless trucks, saying, "Trucking is the American economy's backbone, but the supply chains are vulnerable and the number of people who want to drive trucks has not caught up to the demand in moving goods."

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The company currently operates autonomous trucks across Texas, which also service customers for FedEx and Uber Freight.

Meanwhile, an internal memo from Aurora was leaked in September 2022, detailing various plans, including cost-cutting, freezing the hiring process and selling itself to tech giants Apple and Microsoft.

The memo was intended to be presented to its board but was mistakenly sent to employees.