Kodiak AI's stock price plummeted 37% in after-hours trading Thursday after the self-driving truck startup disclosed it had raised $100 million by selling shares at a steep discount. The company sold shares for $6.50 each, far below its closing price of $9.10. The raise came from existing backer Ares Management and several unnamed institutional investors.
The infusion of capital is aimed at helping Kodiak scale its self-driving trucks business, which covers off-road industrial settings and public highways. However, the company reported a significant loss of $37.8 million in the first quarter, more than double its loss from the same period last year. Its revenue increased to $1.8 million, up from $1.4 million in the same period.
Kodiak is pushing forward on developing autonomous trucks for various industries, including a recent partnership with Roehl Transport and a pilot program with West Fraser Timber Co. The company aims to eventually operate driverless trucking services on public highways later this year.
Founder and CEO Don Burnette said Kodiak is on track to move to driverless operations as it ramps up its business. "We have tons of over-the-road long-haul initiatives, and bringing on new partners continues to show momentum," he said in an interview. The company plans to operate a driver-as-a-service model once it launches driverless trucking operations, where customers own and operate the trucks.
