Tesla shares slid Thursday afternoon after self-driving car startup Aurora said it raised more than $530 million in funding from investors including Amazon, Sequoia and the investment arm of energy giant Shell.
Tesla shares were down more than 3 percent, near $305.60 a share after the announcement was published.
Markets Insider reports that Thursday’s selling has Tesla shares teetering toward their lowest close since Jan. 29, the day before the electric-car maker’s fourth-quarter earnings report.
Amazon made “significant investments” in Aurora, the tech start-up said in a press release. Aurora is now valued at more than $2.5 billion, according to Bloomberg.
“This funding and partnership will accelerate our mission of delivering the benefits of self-driving technology safely, quickly, and broadly,” Aurora said in a statement.
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Self-driving vehicles could be used to help Amazon make deliveries. The multinational technology company already uses automation in its warehouses and sets its eyes on delivering packages using drones in the future.
Amazon told CNBC that it is always looking to invest in “innovative, customer-obsessed companies.”
“Autonomous technology has the potential to help make the jobs of our employees and partners safer and more productive, whether it’s in a fulfillment center or on the road, and we’re excited about the possibilities,” Amazon said in a statement to CNBC.
Aurora was founded in 2016 by leads of notable self-driving car programs. The Palo Alto-based company is headed by former Google Self-Driving Car Project chief Chris Urmson.
Drew Bagnell, Aurora’s chief technology officer and co-founder was once the head of Uber’s Advanced Technology Center. Sterling Anderson, who’s Aurora’s co-founder and chief product officer, was at the helm of the design and launch of the Tesla Model X, according to Aurora’s website.
In 2017, Tesla filed a lawsuit accusing Anderson of violating his contract by attempting to recruit at least a dozen Tesla engineers, taking confidential and proprietary information, and doctoring and destroying evidence.
The suit was settled in April 2017.
Follow USA TODAY Consumer Tech Reporter Dalvin Brown on Twitter: @Dalvin_Brown