What happened

TuSimple Holdings (TSP) stock plunged below the $1 mark today, having lost a whopping 29% as of 12:30 p.m. ET. The company, which claims to have developed "the world's most advanced" autonomous driving system, has failed to execute and been mired in controversy. Things have now come to a point where the stock is on the verge of getting delisted from the Nasdaq stock exchange.

So what

This morning, TuSimple said that it had received a delisting notice from Nasdaq, and unless the company appeals the notice, the stock will be suspended from trading on the exchange from May 15.

TuSimple has received the notice because it failed to file its quarterly earnings report for the period that ended Sept. 30, 2022, as well as the annual report for the year that ended Dec. 31, 2022, in a timely manner. Nasdaq's listing rules require every company to timely make all its interim and annual reports available to shareholders.

Interestingly, TuSimple also stated that it had appointed a new auditor just yesterday and therefore expects "work" on its quarterly and annual regulatory reports to commence immediately.

TuSimple last announced its third-quarter numbers on Oct. 31, but it didn't file the quarterly earnings report on Form 10-Q, as required by the Securities and Exchange Commission (SEC). On March 9, TuSimple said it was unable to file its annual report on Form 10-K, as it required additional time to hire accountants who can review and audit the company's financial statements.

Now what

Until last year, TuSimple looked like a promising play, given its solid partnerships and focus on building fully autonomous long-haul heavy-duty trucks. Things started to go downhill after the company fired its CEO and came under the SEC's and FBI's scrutiny for its close ties to China.

The market was spooked when TuSimple also failed to report operational and financial numbers, but it probably sees the delisting notice as the last nail in TuSimple stock's coffin.