Aurora Innovation (NASDAQ:AUR) is preparing to expand its autonomous-trucking operations through a second-generation hardware rollout, a planned transition toward a driver-as-a-service model and additional manufacturing relationships, Co-founder and CEO Chris Urmson said at the Morgan Stanley Laguna conference.
Urmson said Aurora began driverless operations last year and launched its second-generation hardware in April. The newer system is intended to support commercial scaling, with Aurora expecting it to enable production of roughly 1,500 tractors. He said the technology is more reliable and lower-cost than the company’s first-generation hardware and is designed to support Aurora’s unit-economic profitability goals.
Production ramp and next-generation hardware
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Aurora expects to end the current quarter with 20 to 25 trucks in operation and plans to reach a production rate of 20 trucks per week in the fourth quarter, Urmson said. The company is working with Roush in Livonia, Michigan, to upfit International trucks with the Aurora Driver system before delivering vehicles to customers.
Urmson said Aurora expects the Roush-supported operation to reach an annualized run rate of about 1,000 units. He also said Volvo has publicly indicated it expects to launch autonomous Volvo VNL trucks in the first quarter of next year and to have more than 300 trucks on the road next year. Urmson said those vehicles would predominantly, if not entirely, be powered by Aurora’s technology.
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The company plans to introduce third-generation hardware with supplier AUMOVIO, a Continental spinout, over the course of next year and into 2027. Urmson said the system is intended to support production at automotive scale, potentially reaching tens of thousands of units. Aurora has worked with AUMOVIO for several years on the supply chain, manufacturing and design of the hardware, he said.
According to Urmson, Aurora’s second-generation system cuts hardware costs by more than 50% and offers roughly three times the durability of its first-generation equipment. Those improvements are intended to lower amortized costs per mile.
Customer demand and operating model
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Urmson said Aurora is fully allocated for 2026 and is seeing a faster path from initial discussions to customer contracts. The company works with customers including FedEx, Werner, Hirschbach, Detmar, McLane and Schneider, he said.
Aurora has accumulated 6 million total miles, including nearly 500,000 fully driverless miles, according to the conference discussion. Urmson said customer interest has increased as carriers gain more evidence that autonomous trucks can operate in their businesses and see other companies adopting the technology.
The company currently uses a transportation-as-a-service, or TaaS, model in which Aurora owns and operates trucks and provides capacity to carriers. Urmson said that model helps customers experience the technology before making longer-term fleet decisions.
Over time, Aurora intends to shift toward a driver-as-a-service, or DaaS, model, in which customers own and operate the trucks while paying Aurora to provide the autonomous driving capability. Aurora expects to limit its TaaS fleet to about 500 trucks or fewer and expects most vehicles in its fleet to be operated under DaaS by the end of 2027.
OEM relationships and capital position
Urmson described Aurora’s deepest truck-manufacturer relationships as those with PACCAR and Volvo, which he said together account for about half of the U.S. truck market. Aurora expects PACCAR to launch the company’s third-generation hardware with a line-side installation, though Urmson did not provide a timeline.
He said Aurora is also using International trucks in its current upfitting model and would ultimately like to integrate directly into International’s production line. Urmson added that Daimler and Freightliner represent another potential partnership opportunity, noting Freightliner’s 40% U.S. market share.
On finances, Urmson said Aurora had approximately $1.2 billion in liquidity at the end of the second quarter. The company has guided for 2026 revenue of $14 million to $16 million, with more than half expected in the fourth quarter. Aurora expects to continue using its at-the-market equity program for items including taxes on restricted stock units and cash bonuses, and Urmson said it may eventually pursue a more structured capital raise.
Regulation and supply-chain considerations
Urmson characterized the regulatory environment as generally supportive. He said most U.S. states permit driverless-truck operations, while Aurora has received its first California permit and expects the process toward full certification there to take 12 to 18 months.
He also pointed to federal support for automated trucking, including transportation initiatives and proposed legislation that could help align regulations among states. Still, he said Aurora must navigate state-by-state requirements because vehicle safety is governed federally while vehicle operation is primarily regulated by states.
Urmson said the company is managing supply constraints involving RAM and CPU availability, though he described those challenges as navigable. Aurora employs roughly 2,000 people, he said, and is focused on industrializing its technology rather than operating as a research organization.
“At some point, what’s going to matter is how many trucks we have on the road, how useful are they for customers, and how much revenue is that generating for us and our partners,” Urmson said.
About Aurora Innovation (NASDAQ:AUR)
Aurora Innovation, Inc develops autonomous vehicle technology designed to transport people and goods without human drivers. Its core product, the Aurora Driver, combines artificial intelligence, sensors, mapping, and other software and hardware systems to enable automated driving across trucking, ride-hailing, and logistics applications.
The company is initially focused on autonomous trucking, where its technology is intended to support long-haul freight operations and improve safety, efficiency, and vehicle utilization.
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