Tensor Auto Inc., a startup that develops autonomous vehicles, is considering raising several hundreds million dollars ahead of a potential initial public offering in the US, according to people familiar with the matter.
The San Jose, California-based company is working with Royal Bank of Canada on the fundraising and has started sounding out perspective investors, said the people, who asked not to be identified as information is private. The company could seek $300 million to $400 million, one of the people said.
A listing in the US could take place as soon as the end of this year or early 2027, according to the people. Deliberations are at an early stage and details of Tensor’s fundraising plans could still change, the people said.
Tensor is open to discussing financing opportunities that support long-term execution in its target markets, it said in an emailed response to Bloomberg, declining to comment further. A representative for RBC declined to comment.
Tensor was born out of AutoX, which introduced robotaxis in China in 2019. It began testing on public roads in California in 2017 and got a driverless permit for passenger vehicles there in 2020. The AutoX China operations were fully divested so that the company could focus on the Tensor brand, Tensor said in a statement in August.
Tensor plans the first deliveries of its Robocars in late 2026. The vehicles have more than 100 sensors, including cameras, lidars and radars, and process sensor data with artificial intelligence technology powered by Nvidia Corp. chips on board. The cars feature foldable steering wheel and pedals and can be operated by a driver or autonomously.
Lyft Inc. is partnering with Tensor to deploy a fleet of hundreds of robotaxis in Europe and North America starting in 2027.
Written by: Vinicy Chan — With assistance from Natalie Lung @Bloomberg
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