Posted on 03/07/2023 5:01:00 AM PST by Oldeconomybuyer
The aftermath of the pandemic-era tech boom has taken another San Francisco victim.
Autonomous trucking software company Embark Trucks is laying off 230 workers and moving toward a total shutdown, the firm announced Friday, less than 16 months after it went public at a $5.2 billion valuation.
Friday’s layoff round represented about 70% of the company, according to an email to employees from CEO Alex Rodrigues. Workers will receive severance pay through June 2, health benefits through the end of August and help figuring out visas, if needed, Rodrigues said.
Embark is also shuttering offices in southern California and Houston.
Rodrigues said that the remaining workforce will help Embark wind down and explore exit options such as selling assets, restructuring or just shutting down.
The company debuted in the public markets at a $5.2 billion valuation that November [2021]. In a story that encapsulates the now-burst tech bubble, Embark’s stock is down 99% from that initial price, no longer boosted by techno-optimism, low interest rates and easy-spending venture capitalists.
(Excerpt) Read more at sfgate.com ...
With a life-long background in robotics and engineering, founders Alex Rodrigues and Brandon Moak knew successfully commercializing autonomous vehicles would require a narrow focus and clear business case. After spending time getting to know truck drivers and fleets, Alex and Brandon decided to go against the self-driving industry’s conventional wisdom at the time, by focusing exclusively on trucking.
They don't look old enough to have a life-long background in anything....................
Their lifelong experience at 28 years old is a laugher.
3 months 'severance pay' for a company they worked for for less than 2 years?
The shareholders will not like that. Share price down 99%. What a grift.
Thy probably had a ten minute conversation with a driver at a gas station and called that their research.
All I know about valuation calculation I learned on Shark Tank. None of the Sharks would have given these clowns a penny.
$5.2 billion. Yea right.
A smart owner/Operator is going to get a fantastic deal on a slightly used semi tractor.
Why isn’t Pete Buttman bragging about this accomplishment?
How much tax money was flooded into this scam like Solyndra?
It’s that or give the shareholder/investors some of their money back. Why give a sucker an even break?
Fully autonomous trucks like fully autonomous planes aren’t going to happen in the next 10 to 20 years. Too many unknown variables.
But increasing automation is the way to go - and I don’t see any newcomers breaking in there
Looks like this was a company designed to separate a fool from his money. Instead of creating a company designed to service a need, they decided they create something no one wanted on the hope they would.
Unfortunately a lot of retirement funds are controlled by investment people who would fall for this.
Heh, just think about self-driving Teslas.
Just bigger and without the fireworks of the exploding and burning batteries.
went public at a $5.2 billion valuation
I guess the actual valuation is $0. Make the trains run autonomously, then we’ll talk.
I wonder how many financial advisors had eighty year old grandmothers in that stock....
I always tell this story to folks who think “investment funds” are safe.
I got an MBA in Finance from a well known school and was doing job interviews before graduation.
A large investment firm in SF flew me out there on their dime and tried to convince me that I should help manage their funds.
I had zero real world experience in finance or any of the businesses in their portfolio—and I told them this was dangerous—for them and me.
Manage your own money—you do not want some 28 year old MBA doing it....
Autonomous trucks will be somewhat common on interstates in 5 years.
“… and moving toward a total shutdown, the firm announced Friday, less than 16 months after it went public at a $5.2 billion valuation.”
Elizebeth Holmes of Theranos said she was lonely and needed some company.
Do they have to give all the money back?
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