Monarch Tractor's assets have been acquired by construction giant Caterpillar, according to filings with the United States Patent and Trademark Office. Monarch struggled to pivot to a software services business after initially building "driver optional" electric tractors that could autonomously navigate farms.
The acquisition comes after multiple rounds of layoffs, lawsuits from dealers, and the loss of a major contract manufacturing partner in Foxconn. Co-founder Carlo Mondavi said he was "pushed out" after disagreeing with CEO Praveen Penmetsa's software-forward approach. Monarch raised over $200 million since its founding in 2018.
The company had initially planned to build tractors at its own facility in California, but eventually partnered with Foxconn to occupy a former General Motors factory in Ohio. However, Foxconn only produced a few hundred tractors for Monarch before selling the plant and leaving Monarch without a manufacturer.
