Caterpillar has completed the purchase of Monarch Tractor’s remaining assets, inheriting the company’s autonomous farming technology and intellectual property. Monarch, founded in 2018, had raised over $200 million but struggled to commercialize its electric tractors and pivot to software services.

Monarch faced multiple rounds of layoffs, the loss of its Foxconn manufacturing partner in Lordstown, Ohio, and three separate dealer lawsuits claiming defective autonomous systems. Co-founder Carlo Mondavi was ousted after disagreements over the company’s software-forward strategy, and Monarch entered an assignment for the benefit of creditors in early 2026.

Caterpillar’s shares closed at $770.17 in the latest trading session, marking a 3.03% decline from the prior day. The drop reflects investor caution over the strategic fit of Monarch’s assets and broader market volatility.