Parallel Systems raises $100 million for autonomous freight rail

Parallel Systems, a Los Angeles-based company founded by former SpaceX engineer Matt Soule, has raised $100 million in a Series C funding round led by AVP. The company develops autonomous, battery-electric freight rail vehicles designed to compete with trucking on short-haul routes, which account for approximately 60% of the land freight market.

Unlike traditional freight trains that require locomotives to pull coupled cars, Parallel Systems’ vehicles are self-propelled. They can operate individually or form coordinated platoons of 10 to 30 units, allowing for flexible routing and automated sorting without the need for manual coupling. The vehicles can carry standard shipping containers and feature a 500-mile range with a one-hour charge time.

The new capital will be used to scale production of the third-generation Panther vehicle and support commercial expansion into international markets, including a strategic partnership with Agility to target the EMEA region. The company is already conducting demonstration operations in Georgia under Federal Railroad Administration supervision in collaboration with Genesee & Wyoming.