Toyota-backed Chinese self-driving startup Pony AI files for US IPO

Pony AI, a Toyota-backed Chinese self-driving tech startup, is preparing to go public after eight years in the game. The company just filed for an initial public offering (IPO) in the U.S., marking a significant step for both Pony AI and investors eager to see more companies testing the waters amid relaxed regulatory pressures.

The company plans to list on Nasdaq under the ticker symbol “PONY.” While the exact size of the offering hasn’t been disclosed, Goldman Sachs, BofA Securities, Deutsche Bank, Huatai Securities, and Tiger Brokers will be handling the underwriting. Toyota holds a 13.4% stake in the company, Reuters reported.

In recent weeks, the IPO market has gained momentum, thanks to signs of policy easing from the Federal Reserve and strong market performance. However, Chinese companies have slowed down on U.S. IPOs since Beijing’s 2021 crackdown on offshore capital-raising, but Pony AI follows others like Zeekr and BingEx, signaling renewed activity.

In the first half of 2024, Pony AI saw its revenue almost double to $24.7 million. Despite this strong growth, the company still posted a net loss of $51.3 million, an improvement from the $69.4 million loss reported the previous year, according to Reuters.

The company’s fleet of over 250 robotaxis has logged an impressive 33.5 million kilometers, with 3.9 million kilometers driven without any human behind the wheel.

Founded in 2016 by James Peng and Tiancheng Lou, Pony AI operates out of Fremont, California, and Beijing. The company is focused on making autonomous mobility safer and more reliable, with ambitions of leading the autonomous driving market in China.

In 2022, Pony AI was valued at $8.5 billion, and last year it secured $100 million from Saudi Arabia’s NEOM. Still, experts point out that the path to mainstream robotaxis is full of challenges, especially around safety in tricky situations like bad weather and complex intersections.

In April 2022, Pony.ai became the first autonomous-driving taxi company in China after it was granted a taxi license by Chinese authorities. Then in August 2023, Toyota partnered with Pony AI to mass produce robotaxis in China, setting up a venture this year that will build cars that employ the startup’s autonomous driving technology and ride-hailing services.

Pony AI (Credit: Pony.Ai)