Dive Brief: - Aurora Innovation’s transition to commercial scaling introduces improved autonomous technology produced at half the cost through its second-generation truck, company executives said on a call with analysts on July 29. - “Crucially, we expect this kit to drive a 50% plus reduction in Aurora Driver hardware costs, a key lever supporting our breakeven gross margin target,” Chris Urmson, co-founder and CEO said in the call. - Between 20 and 25 autonomous trucks are expected to be in service in Q3, Urmson said. But manufacturing partner Roush is on track to reach an annual production rate of 1,000 trucks in October. Dive Insight: As Aurora Innovation advances scaled production, the company is also on track to have more than 200 driverless trucks in operation by the end of the year, CFO David Maday said in the call. The fleet is expected to generate about $80 million in revenue through transportation-as-a-service agreements. Securing more TaaS arrangements is a good sign for autonomous trucking, according to TD Cowen analysts. “New customer TaaS wins help accelerate the commercial flywheel and signal robust demand for autonomous trucking solutions,” TD Cowen analysts wrote in an investor note. The analysts noted that Aurora executives said that current TaaS customers intend to migrate to Driver-as-a-Service agreements in 2027, which are more lucrative. Through DaaS arrangements like Aurora has with Hirchbach, customers have control and ownership of assets, which allows them to maximize total cost of ownership savings, according to the autonomous tech firm. While Aurora, won’t own those vehicles, the company earns revenues through Aurora Driver subscription services as it evolves into a high-margin and capital-efficient business, per a May press release. TD Cowen analysts added recently announced partnerships with Charger Logistics and Value Truck, “not only validate Aurora’s technology but also signal growing industry