The archive · Hardware & Devices · Strategic decision · 2018–2026
Monarch Tractor: autonomous EV-tractor bet ends in 2026 shutdown, Caterpillar buys tech
Monarch raised $251M to build 'driver optional' electric tractors, shipped ~500 units, then shut down in April 2026 and sold its tech to Caterpillar.
Monarch Tractor
What the business is
Monarch Tractor built fully electric, driver-optional autonomous tractors for vineyards and fruit farms, selling hardware plus a software platform, and later tried to license its autonomy stack to other equipment makers.
Starting capital：$251M total raised, including a $20M Series A and $61M Series B led by Astanor Ventures in 2021 and $133M in 2024 (TechCrunch; Pitchbook data via Bloomberg/LA Times).
How it started
Founded in 2018 by CEO Praveen Penmetsa, winemaker Carlo Mondavi and former Tesla gigafactory executive Mark Schwager, Monarch bet that 'driver optional' electric tractors could automate specialty-crop farming. It raised a $20M Series A in March 2021 and a $61M Series B led by Astanor Ventures that November, with CNH Industrial, At One Ventures and Trimble Ventures participating.
What happened
Monarch delivered its first MK-V in December 2022 and moved manufacturing to a Foxconn factory in Lordstown, Ohio, shipping around 500 tractors. In late 2024 it cut roughly 10% of staff and restructured toward software and licensing; then Foxconn sold the Ohio plant to SoftBank in August 2025, leaving Monarch without a manufacturer. Three dealers sued, claiming the tractors could not operate autonomously, and a November 2025 memo warned staff of up to 102 layoffs or a shutdown.
How it ended up
Monarch shut down in April 2026, entered an assignment for the benefit of creditors, auctioned off its remaining tractors, and sold its technology and engineering team to Caterpillar — first reported by Bloomberg and confirmed in USPTO filings.
Background
Monarch Tractor was a bet that specialty-crop farming would pay for the same electrification and autonomy wave that swept cars. Founded in 2018 by CEO Praveen Penmetsa, winemaker Carlo Mondavi and former Tesla gigafactory executive Mark Schwager, the company promised 'driver optional' electric tractors that could autonomously navigate vineyards, fruit farms and dairy farms, and raised $251M — including a $61M Series B led by Astanor Ventures in 2021 and $133M in 2024.
The wedge was vineyards and other high-value specialty crops, where labor is scarce and a precise electric tractor justified a premium price; the first production unit went to Wente Vineyards and the company later delivered its first MK-V in December 2022, with manufacturing at a Foxconn plant in Lordstown, Ohio. Monarch claimed it shipped roughly 500 tractors and drew comparisons to Tesla within the agriculture industry.
The business then came apart from several directions at once. Monarch cut staff in early 2024, restructured toward software and licensing in late 2024, and lost Foxconn as its manufacturer when Foxconn sold the Ohio plant to SoftBank in August 2025. Three dealers sued, claiming the tractors could not operate autonomously, and a November 2025 memo warned employees of up to 102 layoffs or a shutdown. Co-founder Carlo Mondavi said publicly that he had been 'pushed out' a year earlier after arguing the hardware had reliability problems.
Monarch shut down in April 2026, entered an assignment for the benefit of creditors, auctioned its remaining tractors, and sold its technology and engineering team to Caterpillar — first reported by Bloomberg and confirmed in USPTO filings. The company that raised more than $200M over eight years ended as a technology acquisition by a construction giant.
What has to be true
- The founders bet a premium electric tractor with software would win specialty-crop farms first, where labor shortages made automation urgent.
- They raised $251M across eight years, but the hardware was expensive to build and the manufacturing partner relationship was fragile — one plant sale ended production.
- The late pivot to software licensing assumed the autonomy stack was the valuable asset, but three dealers said the autonomy never worked, undermining the pitch.
- Revenue concentration shifted to licensing only in 2025, too late to replace hardware cash flow; the company was surviving on investor money until it ran out.
What can be applied
Monarch's pivot to software licensing was a bet on the code alone: dealers said the autonomy didn't work, the contract manufacturer left, and the only asset left to sell was the technology.
Aftermath
As of 2026-09-02 Monarch Tractor no longer operates as a company. After the April 2026 shutdown its technology and engineering team were acquired by Caterpillar, its remaining tractors were auctioned, and the founders dispersed — Carlo Mondavi said he had been pushed out a year earlier over disagreements about hardware reliability. Monarch's electric-drive technology, autonomy software and field experience now sit inside Caterpillar's push into autonomous off-highway and construction equipment.
Sources
- Monarch Tractor's collapse ends with an acquisition by Caterpillar
- Caterpillar acquires Californian self-driving tractor startup
- Exclusive: Monarch Tractor preps for layoffs and warns employees it may 'shut down'
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