SpaceX alumni raise $100M for autonomous freight rail startup

Parallel Systems, a startup founded by SpaceX alumni, has raised $100 million in Series C funding to scale production of its autonomous, battery-powered rail vehicles designed to make short-haul freight rail competitive again. The company’s Panther vehicles can move several tons of freight up to 500 miles without an operator, targeting the majority of U.S. freight trips that are under 500 miles and currently dominated by trucking. The funding round was led by AVP, with participation from Hillspire, Agility Global, and others. Parallel’s coupler-free, platoon-based design allows vehicles to split without human intervention, and the company has already received Federal Railroad Administration approval to test on 160 miles of track near the Port of Savannah, Georgia. The startup aims to help railroads recapture market share from struggling trucking firms while reducing congestion and pollution.