Kodiak AI's stock tumbled by 37% in after-hours trading Thursday following the company’s $100 million fundraising round. The funds were raised through shares sold at a steep discount of $6.50 each, compared to its closing price of $9.10.

The financing included warrants that let investors buy additional shares later at set prices as low as $6. The influx comes from existing backer Ares Management and several unnamed institutional investors. Despite the capital, the company is still burning cash quickly, with a loss from operations of $37.8 million.

Under its deal with Roehl Transport, Kodiak-equipped trucks will autonomously haul freight between Dallas and Houston on four round trips per week. The company aims to move towards driverless trucking on public highways by the end of 2026 after completing extensive validation work through its autonomy readiness measure.

Kodiak, having reported revenue of $1.8 million in Q1, is pushing forward with its self-driving trucks business covering off-road and public highways. Its founder Don Burnette remains optimistic about future progress despite the steep discount terms which have rattled investors.