Aurora Innovation (AUR) 2nd Annual CG Virtual Sustainability Summit summary

Market focus and strategy

• Prioritizing autonomous trucking due to its $1 trillion market size and higher economic impact compared to ride-hailing, with immediate benefits for cost of ownership and industry transformation.

• Demonstrated technology transferability between trucking and ride-hailing, but current focus remains on trucking for near-term momentum and value creation.

• Plans to enter ride-hailing after scaling trucking operations and launching third-generation hardware, aiming for a competitive cost structure.

• By 2028, targeting operations in a 50 billion vehicle-mile serviceable addressable market (SAM), with current operations covering 3.6 billion miles.

• Geographic expansion will start with the Sun Belt, moving northward, and international expansion is anticipated after establishing a strong U.S. presence.

Partnerships and fleet development

• OEM partnerships with PACCAR and Volvo are central to scaling, enabling lineside installation of autonomous kits and leveraging existing manufacturing capacity.

• Volvo has begun lineside installation for pre-production, while PACCAR is expected to align with the third-generation hardware launch.

• Introduced a second fleet using International trucks and Roush for upfitting, with plans to build 20 trucks per week and expand the driverless fleet in Q3.

• No ride observers will be required for future Volvo, International, or PACCAR trucks built at their plants.

• Additional OEM partnerships and broader brand integration are expected over time, with the Aurora Driver now on three truck brands.

Technology and scaling timeline

• 2027 is targeted for scaling operations, launching the third-generation hardware kit, and transitioning to a driver-as-a-service business model.

• First-generation kits are hand-built and costly; second-generation kits are more scalable and cost-effective; third-generation kits will enable tens of thousands of units and serial production.

• Confident in cost reductions for Gen 3 hardware, especially with LIDAR advancements and manufacturing automation, supporting gross margin targets.

• Early builds and sourcing indicate costs are tracking as planned, with further improvements expected from LIDAR on a chip and partnerships with suppliers.