When it comes to being listed as a stock on the NASDAQ, there are only a few simple rules to follow. Failing to follow same, meanwhile, can mean your complete dismissal. That’s what’s happening to TuSimple (NASDAQ:TSP), who faces potential de-listing after receiving a notice of non-compliance with NASDAQ rules. That news was enough to send TuSimple down over 29% in Thursday’s trading.
The problem that prompted the notice was that TuSimple—which makes autonomous vehicle equipment—did not file a Form 10-Q quarterly report for the September 30,2022 quarter. Nor did it file an annual report for the fiscal year, which ended December 31,2022. Now, TuSimple has just days to appeal the delisting notice, or it will be removed from trading May 15. TuSimple has already announced that it has plans to do exactly that, and from there, a hearing process should begin within the next 45 days. It’s often closer to 30, though.
TuSimple was increasingly known in its field, bringing out new advances and setting up partnerships to put these advances to work. But despite its rise, the fall came almost as quickly. When the co-founder of TuSimple, Xiaodi Huo, was tossed out, that seemed to kick off a chain of disasters. An investigation from the SEC and a corporate restructuring back in December left TuSimple limping. Given that TuSimple closed Thursday under $1, it may have another problem to deal with as well: failure to meet minimum pricing.
A look at the last five days in trading for TuSimple shows a disaster in the making. Share prices were a bit volatile, but might have been starting a recovery. The latest news may have broken the stock altogether. Now, with shares under $1 for the first time in three years—down from a high of over $70 back in June 2021—it’s clear that TuSimple is in a very bad position.
