Chinese autonomous driving company Pony AI saw its American depositary shares (ADS) surge by 19% in their trading debut, following a successful $413.4 million fundraising through an IPO and concurrent private placements. The IPO pricing, delayed by a week due to regulatory queries, resulted in ADS priced at $13 to $15.50 each,
The company reached a valuation of $5.4 billion, positioning it alongside established giants like Tesla and Waymo. Also, it raised $260 million through the sale of 20 million ADS, while private investors contributed an additional $153.4 million by purchasing ordinary shares at the same price.
Autonomous vehicle fleet
Co-located in Silicon Valley, Beijing, and Guangzhou, Pony AI was founded by James Peng and Tiancheng Lou in 2016. Currently, the company operates a fleet of more than 250 robotaxis as well as over 190 autonomous trucks across the nation, and has launched the commercial operation for robotaxi services in Beijing, and Guangdong province’s Guangzhou and Shenzhen. It has accumulated nearly 40 million kilometres of autonomous driving test mileage.
It is also one of the first batch of companies to obtain licences to operate fully driverless vehicles in certain designated areas of the first-tier cities in China.
Pony AI emphasises fully autonomous Level 4 systems rather than incremental improvements like advanced driver assistance systems (ADAS). This positions it as a direct challenger in the race for comprehensive autonomy. Its extensive partnerships, such as those with Toyota, provide significant resources for innovation and expansion.
Pony AI: A Virtual Driver tech
It leverages its vehicle-agnostic Virtual Driver technology, a full-stack autonomous driving technology that seamlessly integrates its proprietary software, hardware, and services. Pony AI develops a commercially viable and sustainable business model that enables the mass production and deployment of vehicles across transportation use cases. Its Virtual Driver technology integrates AI-trained software with hardware like GPS, optical cameras, radar, and lidar, distinguishing itself from the technology employed by competitors.
Revival of Chinese IPOs in the US
This IPO signals a modest resurgence of Chinese companies listing in the US with total fundraising reaching $1.2 billion in 2024, nearly double the amount from the same period in 2023. Other notable entries include WeRide Inc. and Zeekr Intelligent Technology.
The company is tapping the US markets as President Donald Trump’s administration considers ramping up competition in the autonomous driving sector. Notably, the US and China have a major chunk of funding in this industry and have the most robotaxi startups worldwide.
Pony.ai co-founder and CEO, Dr. James Peng said: “Since our founding in 2016, Pony.ai has grown into a global leader in the large-scale commercialisation and mass production of autonomous mobility. This achievement would not have been possible without the unwavering support of our users, partners, shareholders, and employees. Over the past eight years, we have navigated the industry through cycles, and achieved remarkable breakthroughs in autonomous driving technologies. Now, as we reach this pivotal moment in our commercialisation journey, we look forward to delivering safer, more efficient, and accessible mobility solutions for society. Today marks the beginning of a transformative chapter for Pony.ai, and the dawn of a new era for autonomous mobility.”
Pony.ai co-founder and CTO, Dr. Tiancheng Lou said: “Our debut on Nasdaq is just the beginning of the profound ways in which autonomous driving technology will change the world. The journey to revolutionise mobility is akin to climbing Mount Everest – a path that demands perseverance, patience, and a commitment to a long-term vision. Through continuous innovation, we aim to achieve a technological transformation that will enable autonomous driving to surpass human drivers. Today’s milestone Nasdaq listing strengthens our mission to redefine the driving experience, offering unprecedented levels of safety, efficiency, and convenience. We are pleased to see our vision take root globally as we continue shaping the future of mobility powered by AI.”
