TLDR:
Key milestone in robotaxi tech
IPO scaled back from prior goals
Facing security concerns, regulatory hurdles
NEW YORK (The Thursday Times) — Chinese self-driving company Pony AI is pushing ahead with a planned US listing, aiming for a valuation of just under $4.5 billion. Once pegged at nearly $12 billion in its prior 2021 blank-check deal that fell through due to tightened Beijing regulations, Pony’s IPO ambitions have now been reset, marking a significant pivot in the volatile global AI-driven mobility market.
In a move watched closely by industry insiders, Pony AI, backed by Japanese carmaker Toyota and the Saudi Arabian megacity project NEOM, seeks to generate nearly $195 million through its IPO. The company is offering 15 million American Depositary Shares priced between $11 and $13 each, signalling a fresh attempt to tap into US markets following WeRide’s Nasdaq listing just a month ago. Although Pony’s value projection is down from an earlier $8.5 billion valuation, interest remains strong, with Chinese automaker BAIC among investors slated to buy shares worth almost $75 million.
In October 2023, Pony AI secured a $100 million investment from Saudi Arabia’s NEOM, a smart city development project. This partnership includes plans to establish a joint venture focused on developing and deploying autonomous vehicles and related infrastructure in the Middle East and North Africa region.
Committed investors
Despite the scaled-back valuation, Pony’s appeal among global and strategic investors remains evident. Canadian pension giant Ontario Teachers’, as well as the rebranded HongShan (formerly Sequoia China), are among those poised to back the company’s market entry. Additional private placements are expected to bring in over $150 million, further bolstering Pony’s coffers. However, the company’s future in the US remains clouded by the White House’s potential ban on Chinese-developed systems amid ongoing national security concerns.
Chinese companies have cautiously resumed US listings after the ride-hailing firm Didi Global was forced to delist in a political tug-of-war. In response, Beijing relaxed overseas listing rules, aiming to ease market entry for its technology leaders. Pony AI’s public listing is part of this broader shift, with companies now hoping for greater regulatory clarity and access to US capital markets. As the landscape for robotaxis evolves, Pony and its counterparts, such as WeRide, must balance innovation with complex international regulations.
Robotaxis
Self-driving cars are heralded as the future of mobility, yet progress remains constrained by safety and profitability concerns. While trials are moving quickly in China due to strong government backing, US regulators are moving more cautiously, often citing security issues related to Chinese technologies. Robotaxis require substantial R&D investments to reach widespread commercialisation, with safety and regulatory hurdles presenting ongoing challenges. Analysts warn that profitability remains uncertain, especially in a market where approvals can be complex and protracted.
