Pony AI, an autonomous vehicle company supported by Toyota, is set to go public in the U.S., following a ban by Beijing on raising funds overseas.
Zeekr, a luxury EV startup from China, recently listed on the New York Stock Exchange, while WeRide plans to file for an IPO valued at $5 billion, although its timeline has faced delays.
Pony was valued at $8.5 billion during a 2022 funding round, with Toyota owning 13.4% after investing $400 million. In 2023, Pony secured an additional $100 million from Saudi Arabia’s NEOM and $27 million from GAC Capital.
Pony plans to lower its IPO valuation to $4 billion and has cut its fundraising target from $425 million to $200 million.
Modest Fleet and Operations
Pony operates 190 robotrucks and over 250 robotaxis in several Chinese cities, generating an average of 15 daily orders per robotaxi from its PonyPilot app users. They have logged over 20 million autonomous driving miles, with only 2.4 million being fully driverless.
The robotruck business is growing, contributing 73% of their total revenue in the first half of 2023, heavily reliant on just three customers.
Revenue Trends
Pony claims to have gross profits of $32 million in 2022 and $17 million in 2023, but has incurred losses exceeding $270 million due to significant R&D expenditures.
As of mid-2023, 44% of its 1,300 employees are in R&D, emphasizing the company’s focus on technology development over operations. Despite increasing revenue to $24.7 million in early 2024, Pony’s total recovery remains uncertain.
Extensive Risk Disclosures
Pony’s IPO included 60 pages outlining business risks, including challenges related to compliance with U.S. accounting standards and regulatory oversight from Chinese authorities.
Other risks mentioned include potential limitations on U.S. robotaxi testing due to regulatory changes, with U.S. operations generating minimal revenue.
Pony’s Vision
Pony presents an optimistic view of its technology, claiming to operate self-driving taxis that provide an impressive experience to passengers.
They describe a scenario where passengers enjoy seamless rides while their robotaxi autonomously continues its services, painting a futuristic picture of mobility.
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