Pony AI, an autonomous vehicle company backed by Toyota, is set to go public in the U.S. following a ban from Beijing on overseas fundraising.
Zeekr, a luxury electric vehicle startup, recently started trading on the New York Stock Exchange, while another AV company, WeRide, plans to file for an IPO this year but has faced delays.
Pony AI was valued at $8.5 billion during a capital raise in 2022, with Toyota holding a 13.4% stake after investing $400 million in 2020. It has since raised an additional $127 million from NEOM and GAC Capital.
However, Pony’s IPO filing has revealed that it lowered its expected valuation from $8.5 billion to $4 billion and reduced its fundraising target from $425 million to $200 million.
Company Operations
Pony operates 190 robotrucks and over 250 robotaxis in multiple Chinese cities. It handles fares in three cities and is fully driverless in two of them. The company claims an average of 15 daily orders per robotaxi and has completed over 20 million autonomous driving miles, with only 2.4 million being fully driverless.
Financial Performance
Pony reported gross profits of $32 million in 2022 and $17 million in 2023, but total losses exceeded $270 million. High R&D costs contribute significantly to these losses, with 44% of its workforce in R&D.
Despite nearly doubling its revenue to $24.7 million in the first half of 2024, Pony faces challenges in meeting its overall revenue goals for the year.
Risk Factors
Pony’s IPO filing included 60 pages of risks, including challenges in finding qualified staff and regulatory oversight from Chinese authorities that could impact operations. The company also cited a potential risk to its limited U.S. operations from upcoming regulations on Chinese technology.
Pony’s Vision
Pony portrays an optimistic view of its technology, envisioning a future where passengers can enjoy fully autonomous rides in urban settings, highlighting its advancements in the field of self-driving vehicles.
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