Chinese autonomous driving technology firm Pony.ai announced at the end of last week it had filed for initial public offering (IPO) in the US, as it looks for further funding to expand its robotaxi fleet in China.
According to local analysts, the company’s IPO filing is a sign of growing investor interest in new listings in the US after the country’s Federal Reserve began easing its policy rate in September, as well as a broader easing of regulatory pressures concerning Chinese technology companies. The underwriters for the IPO include Goldman Sachs, Deutsche Bank, Bank of America Securities, Huatai Securities and Tiger Brokers.
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Pony AI, which is 13.4%-owned by Toyota Motor Corporation, operates a fleet of over 250 robotaxis in China. The company revealed its revenues doubled to almost US$25m in the first six months of 2024 while incurring a net loss of US$51m. The company, last valued at US$8.5bn in 2022, secured funding of US$100m from Saudi Arabia’s Neom Investment Fund last year.
The self-driving taxi sector in China is taking a long time to get established, reflecting the industry’s technological complexity and given the necessary government regulations and licensing requirements.
