Parallel Systems has raised $100 million in a new funding round to scale production of its autonomous, battery-electric freight rail vehicles, betting that smaller, self-propelled railcars can make rail shipping more competitive with trucks on shorter routes.

The Los Angeles-based company announced the close of its Series C round on October 7, saying the funding would support production of its third-generation Panther vehicle, commercial expansion, and entry into international markets. 

Founded in 2020 by former SpaceX engineer Matt Soule, Parallel Systems is developing a freight system that combines electric propulsion, autonomous control, and software-coordinated rail vehicles. Its aim is to make rail practical for shipments that are often moved by trucks because conventional freight trains are less flexible on shorter routes.

Traditional freight trains rely on locomotives to pull long strings of coupled railcars. That arrangement is efficient for moving large volumes over long distances, but assembling trains and coordinating terminal operations can make smaller, short-haul shipments less economical.

Parallel’s approach is different. Its battery-electric vehicles propel themselves rather than relying on a conventional locomotive, and can operate individually or form coordinated groups, known as platoons. The vehicles can separate and regroup to route freight toward different destinations without requiring the same conventional coupling arrangements.

The system is designed to carry standard shipping containers, allowing it to work with existing freight infrastructure and handling equipment. Onboard sensors and vehicle-control software track position and operating conditions, while the company’s software is designed to integrate with railroad control and logistics systems.

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