TechCrunch recently reported that Motional secured a bridge loan to keep operating while it lines up its next financing. The company had been, or maybe still is, a joint venture between Hyundai and Aptiv, the Tier 1 automotive supplier. However, Aptiv announced in January that robotaxis are proving too expensive, and stopped financing Motional.
Details on the bridge loan are scant. Motional simply put out a press release that the short-term financing will give “shareholders” time to discuss longer-term financing and “solidify alignment” on Motional’s strategic direction. Motional does say it is “in negotiations to finalize” its next round of funding.
I suppose the issue here may be that Hyundai, or whoever is leading the next financing round, wants to make sure they own enough of Motional that they aren’t just funding the company for Aptiv’s benefit. Perhaps the next round of financing involves selling Aptiv’s ownership stake, in addition to securing new cash. Just speculation, of course.
David Silver 