Robotaxi Service Pony AI Stock Falls Despite IPO Buzz - Here's Why
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Zinger Key Points
  • Pony AI filed confidentially for a Hong Kong IPO to fund expansion, aiming to limit impact on U.S. shares.
  • A self-driving Pony AI robotaxi caught fire in Beijing; no injuries reported as vehicle stopped automatically.

Pony AI Inc. PONY has confidentially filed for a Hong Kong initial public offering to help raise capital to expand its business.

The autonomous-driving company filed for listing to limit the impact on Pony AI’s U.S.-traded shares, Bloomberg reported Wednesday, citing unnamed sources familiar with the matter.

The stock price soared in Wednesday’s premarket session before giving up the gains.

Also Read: Pony.ai And Tencent Partner On L4 Robotaxis, Expand China’s Self-Driving Future

A Pony AI’s robotaxi caught ablaze for the first time on Tuesday, CNBC reported on Wednesday, citing the company. No passengers were on board during the incident, and the vehicle automatically initiated an emergency stop, resulting in no collisions or injuries.

Pony AI told CNBC that it detected one of its fully self-driving vehicles as having an abnormal status in Beijing around 9:30 a.m. local time on May 13.

The company had raised ~$413 million in a U.S. initial public offering and concurrent private placements in November 2024.

Pony AI stock surged 50% in the last 12 months. In April, Pony AI chief technology officer Lou Tiancheng told The Wall Street Journal that the company is getting closer to breakeven following cost-cutting measures.

Following the release of three new robotaxis at the Shanghai Auto Show last week, company executives reportedly said Pony AI could build its most advanced autonomous driving systems for 70% less than before.

Analysts said that Pony AI could reach single-unit breakeven goals by the end of 2025.

Reportedly, Pony AI plans to commercialize its robotaxis by mid-2025 and is targeting to add 700 vehicles to its fleet by the end of the year.

Last week, Pony AI tapped Uber Technologies Inc. UBER to launch robotaxi services in the Middle East.

Price Action: PONY stock is down 8.08% to $16.50 at the last check on Wednesday.

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Photo by Tada Images via Shutterstock

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