In a surprising move, TuSimple Holdings has announced its plans to voluntarily delist its common stock from the Nasdaq Stock Market. This decision has led to a sharp decline in the company's shares, which plummeted by 39% to about 43 cents during premarket trading.

Trading for TuSimple Holdings' stock was temporarily halted ahead of the news, and it resumed later at 7:30 a.m. ET. Over the last 12 months, the stock has experienced a significant drop of 66%.

In addition to delisting its common stock, TuSimple also intends to terminate the registration of its common stock with the Securities and Exchange Commission. This strategic move was carefully considered and made by the board's special committee, which concluded that it is in the best interests of TuSimple and its shareholders. The committee determined that the benefits of remaining a publicly traded company no longer justify the associated costs.

TuSimple Holdings attributes this decision to a shift in capital markets, particularly due to rising interest rates and quantitative tightening. These changes have impacted investor sentiment towards pre-commercialization technology growth companies like TuSimple. As a result, the company's valuation and liquidity have been under pressure, while the volatility of its stock price has also increased.

Overall, this announcement marks a significant shift in TuSimple Holdings' corporate strategy. The company believes that by delisting and deregistering, it will be better positioned to navigate the evolving market conditions and focus on its long-term growth prospects.

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