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

Commercial milestones and technology development

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

• Second-generation hardware reduces costs by over 50% and triples durability, supporting a ramp to 1,000+ trucks annually and profitability on a unit economic basis.

• Third-generation hardware, developed with AUMOVIO, will unlock automotive-scale production, targeting tens of thousands of units by 2027.

• Volvo to launch 300+ autonomous trucks in Q1 next year, predominantly powered by Aurora Driver, with PACCAR and International also key OEM partners.

• Commercial momentum is accelerating, with full allocation for 2026 and growing customer demand, driven by proven technology and operational evidence.

Financial outlook and business model evolution

• 2026 revenue guidance is $14–$16 million, with over half expected in Q4 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 by year-end.

• Liquidity stands at $1.2 billion, providing runway into 2027; ATM program used for RSU taxes and cash bonuses, with potential for a more structured capital raise.

• Headcount is around 2,000, with strong talent and ongoing navigation of supply chain constraints, particularly in RAM and CPU availability.

Partnerships, competitive landscape, and regulatory environment

• Deep OEM relationships with Volvo and PACCAR, covering about 50% of the U.S. truck market, with ongoing integration into manufacturing lines.

• AUMOVIO partnership enables scalable, cost-effective hardware manufacturing; International and potential future collaboration with Daimler/Freightliner discussed.

• Competitive advantage attributed to technical lead, supply chain readiness, and real-world operational experience; only company running driverless trucks on public roads daily.

• Regulatory environment is increasingly supportive, with most U.S. states permitting driverless trucks and new federal frameworks fostering alignment and preemption.