Autonomous trucking company Kodiak AI saw its stock plunge 37% in after-hours trading after revealing that it had raised $100 million through a discounted share sale. The sharp decline reflected investor concerns after the company offered shares at a significantly lower price than its recent market value.
According to reports, Kodiak sold shares at $6.50 each, compared to its previous closing price of $9.10. The fundraising round also included warrants that allow investors to purchase additional shares at even lower prices in the future. Existing investor Ares Management reportedly participated in the financing round alongside other institutional investors.
Kodiak AI, formerly known as Kodiak Robotics, focuses on developing self-driving truck technology for highways and industrial operations. The company went public in September through a SPAC merger valued at nearly $2.5 billion and initially raised around $275 million. Despite continued progress in autonomous trucking, the latest funding round highlights growing investor caution around capital-intensive AI and autonomous vehicle businesses.
In its latest quarterly results, Kodiak reported first-quarter revenue of $1.8 million, up from $1.4 million during the same period last year. However, the company’s operating losses widened significantly to $37.8 million as it continued investing heavily in research, development, and autonomous driving technology.
Alongside the funding announcement, Kodiak also shared several operational updates. The company secured a new commercial agreement with Roehl Transport, under which Kodiak-equipped autonomous trucks will haul freight between Dallas and Houston on scheduled weekly trips. It also announced a pilot project in Canada and further collaborations aimed at expanding its autonomous freight operations.
CEO Don Burnette stated that Kodiak plans to launch fully driverless operations on public roads later this year after completing additional testing and validation. The company is also pursuing a “driver-as-a-service” business model, where customers own the trucks while Kodiak provides autonomous software and operational support.
