Aurora Innovation (AUR) Morgan Stanley's 14th Annual Laguna Conference summary

Commercial milestones and technology roadmap

• Achieved major milestone with the start of driverless operations and launched second-generation hardware in April, enabling scale-up to 1,500 tractors and partnerships with major freight customers.

• Second-generation hardware reduces costs, triples durability, and supports a ramp to 1,000+ trucks by end of next year, with Volvo launching 300+ autonomous trucks in Q1.

• Third-generation hardware, developed with AUMOVIO, targets automotive-scale production of tens of thousands of units starting in 2027.

• Commercialization focus is driving down cost per mile and aiming for unit profitability as hardware matures.

• Fully allocated for 2026, with customer demand accelerating and a virtuous cycle of adoption emerging.

Customer and OEM partnerships

• Deep relationships with PACCAR and Volvo, representing about half of the US truck market, with integration into manufacturing lines for scalable deployment.

• International trucks are upfitted with autonomous technology post-production, allowing rapid market entry; future plans include direct line-side integration.

• Daimler/Freightliner, holding 40% market share, is a potential future partner for autonomous trucking.

• Selection of customers is based on their ability to scale, willingness to transition to Driver-as-a-Service, and commitment to long-term partnership.

• OEM partnerships involve close collaboration on requirements, safety, and integration, leveraging each party’s strengths.

Financial outlook and operational scale

• 2026 revenue guidance is $14–16 million, with Q4 expected to contribute over half as the fleet ramps to 200 trucks and an $80 million TaaS run rate.

• Transition from Transportation as a Service (TaaS) to Driver as a Service (DaaS) expected in 2027, with most vehicles owned and operated by customers.

• Liquidity stands at $1.2 billion, providing runway into 2027; ATM program used for RSU taxes and cash bonuses, with plans for future structured capital raises.

• Headcount is around 2,000, with strong talent and a focus on industrializing technology; supply chain challenges (RAM, CPUs) are being managed.