Cyngn (CYN) is an autonomous vehicle company – but not for cars. It specializes in industrial vehicles like forklifts or tuggers that can haul up to 12,000 pounds, “indoors or out.” Cyngn’s CEO, Lior Tal, joined Market On Close to discuss the business with Alex Coffey.

The company highlights the difference between its vehicles and “traditional AGVs” (automated guided vehicle: think Amazon(AMZN) factory robots that use wire or magnetic tape to move around). It partners with Nvidia (NVDA) for some of its next-generation robotics and AI technology, not only to run the machines, but also to virtually train vehicles on the layouts and demands of customer warehouses.

Cyngn’s vehicles can move autonomously, without physical guides, and can adapt to route alterations or environment changes. Managers can stack skills like “unload pallet” and trigger automatic commands like “go charge” to create longer workflows. Tal says they use “robotaxi” technology like Tesla (TSLA) or Waymo to run the machines.

Importantly, Cyngn says that its vehicles can work safely “alongside humans without physical barriers.” These industrial machines are dangerous even when operated by licensed humans.

Industrial trucks ranked 6 on OSHA violations for fiscal 2024, with most violations around safe operation. The National Safety Council (NSC) found 24,960 forklift-involved nonfatal incidents between 2021-2022. However, there are fatalities: NSC reported 67 forklift work-related deaths in 2023. Cyngn itself estimates a cost of $42,000 per accident.

To enhance safety, Cyngn says its Decision Engine is 3 times faster than a human driver, with 360-degree vision using Lidar (radar, but with lasers). It also emphasizes redundancies to cover all possible contingencies. The machines communicate their movements to nearby human workers through light and sound cues. If needed, they can also be switched to manual mode and used regularly.

Cyngn also claims on its site that “customers typically recoup their investment within two years,” offering general examples of “total loss avoidance” among customers.

Its highest-profile client is Deere (DE). It announced a partnership to supply its DriveMod Tuggers to Deere’s facility in Dubuque, Iowa. Sean Stetson, VP of Engineering, says Tuggers create an average of “33% increase in productivity and a 64% reduction in labor costs.”

From a safety and an execution perspective, this is exciting technology, and an easier deployment of self-driving vehicles than on the road.

Turning to the financials, CYN went public in October of 2021. Its latest earnings report, 1Q25, was released on May 7. Cyngn reported $308K in new bookings for DriveMod vehicles. EPS of -$6.60 and revenue of $47.2K both missed Street estimates substantially. Cyngn said in the report it has executed successful DriveMod Tugger deployments with “five major automative OEMs and Tier-1 suppliers across the U.S. and Mexico.”

Cyngn recently secured $32 million in a capital raise, allowing it to operate through 2027. It has also relocated its headquarters to Mountain View, CA, with “larger test and demonstration areas.” In the press release, it highlighted 23 patents granted to-date, and its push into advanced AI along with its partnership with Nvidia (NVDA).

Tal says Cyngn is in “full commercialization” stage, developing their forklifts and deploying tuggers. He hopes to become cash flow positive within the next 12-18 months. He argues that revenue estimates are played “close to the chest” because of competitive secrecy around adoption.

Cyngn is at a significant moment as it deploys its first product and ramps up the second. A partnership with Nvidia and a few high-profile clients might be good grounding as it enters the field. Could this be a potential tangible play on the AI and robotics revolution?

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