Pony AI, an autonomous vehicle company supported by Toyota, is planning to go public in the U.S. after a long ban on Chinese firms seeking overseas funding.
Luxury EV startup Zeekr launched on the New York Stock Exchange in May, while WeRide, another self-driving company, aims to file for an IPO this year, although its plans have faced delays.
Pony AI was valued at $8.5 billion during a funding round in 2022. Toyota holds a 13.4% stake after investing $400 million in 2020. Recently, Pony secured $100 million from NEOM in Saudi Arabia and $27 million from GAC Capital. However, it has lowered its IPO valuation from $8.5 billion to $4 billion and reduced its fundraising target from $425 million to $200 million.
Modest Operations
Pony operates 190 “robotrucks” and over 250 robotaxis across several Chinese cities. It averages 15 rides per robotaxi daily and claims to have completed 20 million autonomous driving miles, though only 2.4 million of those were fully driverless.
Revenue Update
Pony earned $32 million and $17 million in gross profits for 2022 and 2023, respectively, but incurred losses exceeding $270 million. A significant portion of these losses stemmed from R&D expenses. As of mid-2023, 44% of its workforce is in R&D, with plans for increased earnings as robotaxi fares rise.
Sixty Pages of Risks
Pony’s IPO filing includes 60 pages detailing risks, including challenges in hiring skilled staff familiar with U.S. accounting standards and regulatory scrutiny from China’s government. The company also faces potential issues with limited robotaxi operations in the U.S.
Pony’s Vision
Pony presents an optimistic picture of its capabilities, claiming to have developed self-driving technology that seems futuristic. Passengers can use an app to summon rides, all while enjoying a seamless experience as the robotaxi drives itself away after their journey.
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