Self-driving technology startup Motional has secured a bridge loan that provides temporary financial relief as the company looks for a longer-term source of funding, according to TechCrunch.
Motional CEO Karl Iagnemma told staff in a company-wide email seen by TechCrunch that the company’s board approved the bridge financing.
“As I previously mentioned, Motional’s shareholders are in negotiations to complete our next round of financing. As part of these negotiations, our stockholders considered various alternative short-term financing options, including bridge financing, should discussions extend further than anticipated,” Iagnemma wrote in the email. He later added that the bridge financing “will allow our shareholders additional time to discuss long-term financing options and solidify alignment with Motional’s strategic direction.”
The email did not describe the terms or amount of the bridge loan or how much funds it might provide. The company did not respond to an email seeking comment. TechCrunch will update the article if the company comments.
Auto supplier Aptiv — the other half of the $4 billion joint venture with Hyundai that created Motional — said in January it would no longer commit capital to the effort. That left Motional, which plans to launch a commercial robotaxi service in 2024, with enough capital to last until the end of the first quarter of 2024, according to sources familiar with internal meetings at the time.
After a wave of consolidation and shutdowns in the nascent autonomous vehicle industry, Motional is one of the few companies left still pursuing a commercial robotaxi service. The company operates a self-driving taxi service in Las Vegas (with human safety operators behind the wheel) on the Uber, Lyft and Via platforms. It also has a standalone delivery pilot with Uber Eats in Santa Monica, California.
With Aptiv pulling out of future funding, Hyundai remains the sole backer. Motion will either have to find outside investors, with Hyundai’s blessing, or convince the automaker to fully finance the effort.
Motion has taken steps to cut costs as it seeks more funding. Last month, the company cut about 5% of its workforce, or fewer than 70 people. The layoffs mostly affected management roles and some employees who work in Boston, one of several cities where it is testing self-driving vehicles. The autonomous vehicle company last had layoffs in December 2022, when it cut about 10% of its workforce. That earlier layoff primarily affected the company’s operations in Pittsburgh, where it tests AV.
