Pony AI, an autonomous vehicle company backed by Toyota, is set to go public in the U.S. after China’s multi-year ban on overseas funding.
Luxury EV startup Zeekr recently went public on the NYSE, while WeRide plans to file for an IPO this year at a $5 billion valuation, though its plans have faced delays.
Pony was valued at $8.5 billion in 2022 and Toyota holds a 13.4% stake after investing $400 million. In 2023, Pony also raised $100 million from Saudi Arabia’s NEOM and $27 million from GAC Capital.
However, Pony has lowered its IPO valuation from $4 billion and its fundraising target from $425 million to $200 million.
Modest Fleet and Operations
Pony operates 190 robotrucks and over 250 robotaxis across several Chinese cities. They can charge fares in three cities and have achieved fully driverless service in two of them.
Pony’s robotaxis receive about 15 orders daily from 220,000 users, with 20 million miles of autonomous driving recorded, though only 2.4 million were fully driverless.
Pony also has 57 corporate clients for its robotruck business, with top customers contributing 62.8% of revenue in the first half of this year.
Revenue Trends
Pony made gross profits of $32 million in 2022 and $17 million in 2023, but lost over $270 million due to high R&D costs. As of mid-2023, 44% of its employees are in R&D.
While Pony’s revenue doubled to $24.7 million in the first half of 2024, it still has a long way to go to meet its 2023 total of $71.9 million.
60 Pages of Risk
Pony outlined significant risks in its IPO filing, including difficulties finding staff familiar with U.S. accounting standards and the regulatory challenges from the Chinese government.
It also noted the potential risk of limited robotaxi testing in the U.S. due to regulations against Chinese tech companies. Currently, U.S. operations contribute less than 1% of its revenues.
Pony’s Ambitious Vision
Pony’s IPO is less about making lofty claims than previous SPACs. Nonetheless, they showcase their technology as revolutionary, claiming to have developed self-driving cars that give passengers a magical experience.
“On the public roads of China, Pony has made sci-fi a reality by building a car that drives itself, allowing passengers to unlock doors and pay through an app, leaving them awestruck.”
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