Dive Brief:
- Kodiak AI has received approval from California to test its autonomous trucks on state roadways with drivers onboard, the company announced Aug. 14. The company told Trucking Dive via email that this allows such operations to start immediately.
- The announcement comes days after CEO and founder Don Burnette said in the company’s Q2 earnings call with analysts that the state’s regulatory framework “creates a clear path to commercial driverless deployment in California for both intrastate and interstate operations.”
- Now that Kodiak has approval from California, Burnette said the permit allows the company to begin the first phase of scaling coast-to-coast autonomous trucking. He added, “California’s comprehensive autonomous vehicle regulations are a major unlock for freight innovation.”
Dive Insight:
Kodiak AI has been working toward launching long-haul driverless operations since late last year. The company had been awaiting the chance to deploy its technology in California since the state announced new rules allowing autonomous trucks to operate on state roads.
Daniel Goff, VP of external affairs for Kodiak AI, said in an email to Trucking Dive that the company faces no restrictions on where and how it can test in Calfornia, though it must follow the state’s regulations as written.
Before Kodiak AI and other AV firms can progress to applying for a commerical deployment permit in California, they must complete 500,000 miles for heavy-duty trucks during two sperate phases for a total of 1 million miles. California regulators also said OEMs must prepare a strucutred safety case demonstrating the safety of vehicle hardware, software and operations.
Burnette told analysts the launch of Kodiak’s Gen7 platform, which has 50% more computing power than its previous generation self-driving technology and will be installed in its new generation of trucks, will greatly improve safety. The updated technology provides better handling around obstacales and debris and improved vehicle controls.
Contributing to Kodiak’s goal of long-haul operations has been scaling partnerships with long-time customers, including Atlas Energy Solutions. Kodiak last month announced its arrangement with Atlas will add a second simultaneous load-out point along its 42-mile Dune Express sand conveyor system in Texas’ Permian Basin. Additionally, Atlas’s Kodiak-enabled fleet of 28 trucks will expand to 100 autonomous vehicles by mid-2027.
But Kodiak isn’t limiting its technology deployment to the U.S. Burnette said on the call with analysts that in a few weeks, the company will begin its first international autonomous pilot with West Fraser Timber’s log-hauling operations in Alberta, Canada.
Analysts with TD Cowen said in an investor note that Kodiak is “continuing to gain customer momentum.” Analysts added, “we believe Q2 delivered several reassuring datapoints that keep the story on track.”
TD Cowen said Kodiak appears well positioned to play a major role in the collective AV trucking market. Its focus with customers on industrial/off-road markets, which includes Atlas, “is a unique attribute of the story and one which enhances risk/reward, in our view,” analysts said.
Other AV players are also seeking to scale their technologies, coinciding with efforts by federal lawmakers to approve the massive five-year surface transportation reauthorization bill. The legislation, which directs billions of dollars to critical infrastructure projects, also contains a provision to establish regulatory guidelines for autonomous trucks.
Aurora Innovation, for example, is actively deploying its technology through carrier partners as it begins scaling production. Volvo Autonomous Solutions also announced it will be operating more than 300 autonomous trucks on U.S. highways by the end of 2027, followed by industrial scaling in 2028.
Since going public in June, Einride, the Sweden-based maker of electric heavy duty autonomous trucks, has continued expanding its commercial footprint in the U.S. The company recently acquired Flipturn, a developer of charging and energy management software for electric fleets.
