Chinese autonomous driving startup Pony.ai Races Onto Wall Street, But Stumbles on Debut
In a highly anticipated move, Chinese autonomous driving startup Pony.ai made its stock market debut in New York, raising up to $452 million through an initial public offering (IPO) and private placement. However, the company’s shares failed to maintain their initial surge, closing 7.8% lower on their first trading day.
Pony.ai, based in Guangzhou, issued 23 million American depositary shares at $13 each, making it the largest IPO in the U.S. autonomous driving sector this year. Despite an initial jump of over 19%, the shares ultimately settled at $12, giving the company a market capitalization of $4.2 billion.
The funds raised will be used to commercialize and expand Pony.ai’s self-driving services, continue technology development, and potentially pursue strategic investments and acquisitions to strengthen the company’s capabilities and ecosystem.
“Our debut on Nasdaq is just the beginning of the profound ways in which autonomous driving technology will change the world,” said Lou Tiancheng, Pony.ai’s director, co-founder, and chief technology officer. “The journey to revolutionize mobility is akin to climbing Mount Everest, a path that demands perseverance, patience, and a commitment to a long-term vision.”
Established in 2016, Pony.ai offers technological solutions and services related to robotaxis, robotrucks, and technology licensing. The company has already deployed 250 robotaxis and more than 190 self-driving trucks, with nearly 40 million kilometers of autonomous driving testing, including almost 4 million km of fully automated driving.
Pony.ai has forged partnerships with major automakers, ride-hailing, and logistics platforms, including Toyota, BAIC Motor, GAC Group, FAW Group, SAIC Motor, Sany Heavy Industry, QIC, Alipay, Didi Global, Jin Jiang Taxi, Singapore’s ComfortDelGro, and Sinotrans.
Prior to the IPO, Pony.ai had raised over $1.3 billion in seven fundraising rounds, attracting investors such as Toyota, FAW, HongShan Capital Group, Wuyuan Capital, IDG Capital, and China Merchants Capital. The Japanese auto giant holds a 13.4% stake, while HongShan owns 10.2%.
Despite the initial market jitters, Pony.ai remains optimistic about the long-term potential of its autonomous driving technology. The company’s net loss narrowed 26% to $51.3 million in the six months ended June 30, while its revenue more than doubled to $24.7 million.
