TuSimple downgraded to Hold amid CFIUS probe at HSBC

HSBC analyst Yuqian Ding yesterday morning downgraded TuSimple to Hold from Buy with a price target of $2.20, down from $15.90. The company’s management reshuffle and operation disruption are largely priced into the shares, the analyst told investors in a research note. However, the firm pushed out TuSimple’s free cash flow break-even given potential longer time to commercialization. The CFIUS investigation is likely the largest overhang the company is facing, wrote HSBC, which removed China market revenue assumptions from its estimates.