After a shocking reshuffle, the new CEO of TuSimple vows to become an advocate for autonomous driving.

• Xiaodi Hou has recently assumed the roles of CEO and chairman of the board at TuSimple, the autonomous-driving startup he co-founded a few years ago.
• Earlier this month, shares of the company dropped more than 20% after the news of Hou's elevation to CEO, despite the company's statement that it was part of a "planned executive succession."
• "I am the best person to lead this company because I am a relentless decision-making machine with a strong technical background," Hou stated to CNBC.

Xiaodi Hou became CEO and chairman of the board of the autonomous-driving startup he co-founded in March.

Hou, who aims to promote the potential of autonomous freight, shared his thoughts on the subject.

"I am the best person to lead this company because I am a relentless decision-making machine with a technical background. To achieve the next big milestone, there must be tighter integration of all different parts of the company," Hou stated to CNBC.

The appointment of Hou as CEO caused a 20% drop in share prices, despite the company's claim that it was part of a planned executive succession. Reuters reports that the company had not mentioned succession plans during its previous four earnings calls. Hou succeeded Cheng Lu, who had been CEO since 2018.

In 2015, Hou co-founded the company with board member Mo Chen and Chief Operating Officer Jianan Hao. The company announced that it achieved fully autonomous freight delivery late last year. TuSimple refers to the operation of a semi-truck without a person on board or controlling it remotely as "Driver Out."

"Hou, former chief technology officer, stated that we have overcome significant challenges and achieved a milestone. This marks the beginning of a new chapter. The technology is not fully comprehended by people," said Hou.

As CEO, my role is not only to lead the company but also to act as an evangelist and communicate the truth about the challenges of autonomy and the realities we face to the world.

Even those in the industry are attempting to oversimplify complex challenges, as he noted.

According to Bernstein senior analyst David Vernon, autonomous vehicle stocks have fallen hard due to macro pressures on the market. TuSimple shares have fallen more than 60% year to date, more than 45%, and more than 25%.

Vernon stated in a January note that the path to profitability and full commercialization of autonomous trucking is unclear, with meaningful revenue being five to six years away if all goes well. The technology is still in the validation stage, business models are still being developed, the regulatory framework is lacking, and it will take time to prove reliability.

TuSimple is currently moving freight autonomously for some of the largest companies in the freight industry, including those with a minority stake in the startup, such as Union Pacific. Additionally, the company is working with Navistar to develop fully autonomous semi-trucks that are expected to be released by the end of 2024, although the timeline may be subject to change.

The company launched an IPO in April 2021 and has been focused on three goals since then: proving the safety, efficiency, and scalability of autonomous driving. With "Driver Out" achieved, Hou believes it's time to unlock the cost savings of autonomous technology.

We have presented a comprehensive system with numerous safety and redundancy features to the world." Hou stated, "Our focus now is on minimizing the operating cost per mile to compete with human drivers on a per-mile basis. This is the second phase.

Xiaodi Hou will appear on Power Lunch at 2 p.m. ET Wednesday.