Caterpillar, the construction powerhouse, has acquired the assets of Monarch Tractor, which faced difficulties in transitioning to a software services model, as per documents submitted to the United States Patent and Trademark Office.

This acquisition, initially reported by Bloomberg, marks the end of a challenging period for Monarch, which experienced several layoffs, faced lawsuits from three dealers, and lost a key manufacturing partner, Foxconn. This development follows shortly after co-founder Carlo Mondavi expressed that he felt “pushed out” for opposing CEO Praveen Penmetsa’s software-centric strategy.

Mondavi was unavailable for immediate comment. Penmetsa chose not to elaborate beyond a statement from Monarch last week, which mentioned that its technology had been acquired by an unidentified “large global equipment manufacturer.” Caterpillar also did not respond promptly to a request for comment.

Over the past eight years, Monarch secured over $200 million in funding. Founded in 2018 by Mondavi, Penmetsa, and ex-Tesla executive Mark Schwager, it aimed to develop “driver optional” electric tractors that could autonomously navigate wineries, fruit, and dairy farms.

Although Monarch initially intended to produce its small tractors at its Livermore, California facility, it later became one of four companies collaborating with Taiwanese electronics titan Foxconn to utilize a former General Motors manufacturing site in Lordstown, Ohio.

Foxconn’s goal included producing vehicles for EV startups like Fisker, Lordstown Motors, and IndiEV, alongside Monarch’s tractors. However, Foxconn only managed to manufacture a handful of electric trucks for Lordstown Motors (which it acquired the factory from) before that company declared bankruptcy. Both Fisker and IndiEV also became bankrupt before Foxconn could produce their future vehicles at the factory. While Foxconn manufactured several hundred Monarch tractors at the site, it sold the plant to SoftBank in August 2025, leaving Monarch without manufacturing capabilities.

By then, Monarch was already facing challenges. In early 2024, it laid off workers before finalizing a $133 million funding round. Just months later, more employees were let go, and the company announced a restructuring to concentrate on software and licensing its autonomous technology.

Dealers who bought Monarch tractors have alleged that the company’s autonomous technology was faulty from the start. A dealer who sued Monarch in September 2025 claimed the tractors were “defective” and “unable to function autonomously.” (Monarch refuted these allegations in a court document.) Two additional dealers have since lodged similar federal lawsuits against Monarch. In one instance, a former defense attorney for Monarch noted in a January filing that the company entered into an assignment for the benefit of creditors — an alternative to Chapter 7 bankruptcy.

Last month, Mondavi discussed his exit in a comment on an Instagram post from a farmer who voiced concerns about Monarch’s tractors. The winemaker stated he “departed over a year ago due to fundamental approach discrepancies” after witnessing “reliability issues” with Monarch’s tractors at his and friends’ farms.

“I aimed to resolve them through hardware modifications, while the CEO thought software solutions were more effective. I held a strong belief in a different direction but was ultimately prevented and pushed out along with another co-founder,” he wrote.

Earlier this year, the company auctioned off the majority of its remaining tractors.