Pony AI, an autonomous vehicle company backed by Toyota, is going public in the U.S. after a long ban on Chinese firms seeking offshore funding.
Zeekr, a luxury electric vehicle startup, recently debuted on the NYSE, while fellow AV startup WeRide aims to file for an IPO this year, though it has faced delays.
Pony was valued at $8.5 billion in 2022 and has received significant investments from Toyota and other backers. However, it has now lowered its minimum IPO valuation to $4 billion and its fundraising target to $200 million.
Pony’s Operations
Pony operates a fleet of 190 robotrucks and over 250 robotaxis across major Chinese cities, with driverless services in some areas. They report an average of 15 daily orders per robotaxi and have completed over 20 million autonomous driving miles.
The majority of Pony’s revenue comes from 57 corporate customers, with top three clients contributing significantly to income.
Financial Challenges
Pony reported gross profits of $32 million in 2022 but suffered losses exceeding $270 million due to high R&D expenses. Their workforce is heavily focused on R&D, spending $73 million on salaries in 2023 alone. While they expect revenue to grow, they are less certain about reducing costs.
Pony’s revenue nearly doubled in early 2024 compared to last year, yet they need to significantly increase revenue to surpass 2023’s total of $71.9 million.
Risk Factors
Pony’s IPO filing includes extensive risk disclosures, including challenges finding skilled staff to meet U.S. accounting standards. They mention the influence of Chinese regulations and potential restrictions on their U.S. operations.
Pony’s Vision
Pony’s projections for their technology are ambitious. They describe a future where passengers can summon self-driving cars in urban areas, reflecting a vision once thought to be science fiction.
