According to media reports, autonomous driving technology company Aurora Innovation aims to raise several hundred million dollars in additional funding to launch driverless cars by the end of 2024. The company initially planned to sell up to $420 million worth of stock but ultimately exceeded its goal, raising $483 million.
Aurora spokesperson Rachel Chibidakis said in an email, "This round of financing demonstrates investors' confidence in Aurora's long-term development capabilities. The recent analyst day event allowed investors to experience driverless trucks, and recent milestone events highlighted the strength of our partner ecosystem in large-scale deployment."
Aurora went public in 2021 through a special purpose acquisition merger, with its stock price reaching as high as $13.12 on the first day of trading. On August 2, the company's stock closed at $3.84. In after-hours trading, its stock price rose more than 2%.
In a recent filing, Aurora stated that after deducting usual discounts, commissions, and issuance fees, the company previously expected the stock sale to bring in approximately $405 million in net proceeds. "If underwriters fully exercise their option to purchase additional stock," net proceeds would be about $466 million. The transaction completed on the afternoon of August 2 pushed the financing amount to $483 million.
On August 1, Aurora did not answer questions about how the net proceeds would be used. The company did not provide any information in the filings submitted that day, only vaguely stating that the funds would be used for "working capital and other general corporate purposes." The company also wrote in the filings that the proceeds from this offering would first be invested in "short-term and long-term investment-grade notes, certificates of deposit, or guaranteed debt."
However, after the transaction closed on August 2, Aurora provided more details. Chibidakis stated, "The funds from this financing are sufficient to carry us through 2026, putting us on the path to large-scale deployment of driverless trucks and aiming to become a cash-flow positive company by 2028. Continuous development momentum and more favorable market conditions will give us the opportunity to raise more funds."
Aurora plans to start offering commercial services later this year using the Uber Freight network. In June, the two companies announced a multi-year cooperation plan, with Aurora providing autonomous driving technology on the Uber Freight network by 2030.
