Kodiak AI’s stock tumbled 37% in after-hours trading Thursday after the self-driving truck startup disclosed it had raised $100 million by selling shares at a steep discount — a sign that investors were willing to back the company but not at its current market price.
The company sold shares at $6.50 each, well below its closing price of $9.10, according to a filing with the Securities and Exchange Commission (SEC). The raise also included warrants — instruments that give investors the right to buy additional shares later at a set price, in this case as low as $6.
The financing came from existing backer Ares Management and several unnamed institutional investors.
The influx of capital comes Kodiak pushes forward on the expensive task of scaling its self-driving trucks business, which covers off-road industrial settings and public highways, with the ultimate goal of eventually spending less than it earns. Kodiak reported revenue of $1.8 million in the first quarter, up from the $1.4 million it logged in same period a year prior. The company’s loss from operations was $37.8 million, twice what it reported in the same period last year.
Those numbers help explain why the discount terms rattled investors. The company is burning cash fast, and the raise — while sizable — does little to change that math in the near term.
Kodiak has made some recent progress on the business front, including a new commercial contract with Roehl Transport, a pilot program to test Kodiak-equipped autonomous trucks at West Fraser Timber Co.’s log-hauling operations in Alberta, Canada, and a collaboration with the military vehicle maker General Dynamics Land Systems to create autonomous ground vehicles for defense applications.
Under the deal with Roehl, which was also announced Thursday, Kodiak-equipped trucks will autonomously haul freight between Dallas and Houston on four round trips per week. T …