Construction giant Caterpillar has acquired the assets of struggling electric tractor firm Monarch Tractor, bringing to an end a turbulent chapter in agricultural technology.

Monarch Tractor faced numerous challenges, including lawsuits from dealers and the loss of manufacturing partner Foxconn. Co-founder Carlo Mondavi was pushed out after disagreements with CEO Praveen Penmetsa over a software-first approach versus hardware improvements.

The company aimed to create ‘driver optional’ electric tractors for use in wineries, fruit farms and dairy farms but struggled with reliability issues that dealers alleged rendered the autonomous tech ineffective. By 2024, Monarch was forced to lay off staff and restructure its business model towards software services.

The acquisition by Caterpillar could signal a shift back to traditional manufacturing methods in an industry increasingly focused on digital solutions. As Monsieur Mondavi reflects: 'Software alone won’t save the farm,' his parting shot as he left Monarch’s board.