Parallel Systems, a startup founded by former SpaceX engineers, has secured $100 million in a Series C funding round. The investment was led by AVP, with additional backing from Hillspire, Agility Global, Cobalt Capital, Anthos Capital, Congruent Ventures, Riot Capital, and Collaborative Fund.
The company is developing autonomous, battery-powered rail vehicles known as Panther. These units are designed to operate independently or in platoons without human intervention, aiming to capture the short-haul freight market, which currently accounts for approximately 60% of U.S. freight trips.
The technology allows for the transport of several tons of cargo over distances up to 500 miles. Unlike traditional trains, the vehicles use a coupler-free design, enabling them to split up at train yards automatically. The system also utilizes sensors to monitor tracks for obstacles.
Parallel Systems has been testing its technology for the past 18 months near the Port of Savannah in Georgia, operating on 160 miles of track under approval from the Federal Railroad Administration. The company is now preparing for its first commercial payload.
