Beijing Momenta Technology Co., a Chinese self-driving developer, has reportedly filed for an initial public offering (IPO) in the United States. However, the fate of Momenta’s IPO in the US remains uncertain amidst escalating tensions between the two nations.
The news of Momenta’s potential IPO in the United States comes as Tesla’s robotaxi tests in China gain support from the local government. Tesla’s Full Self-Driving (FSD) technology appears to be openly welcomed in China, contrasting with the potential reception Momenta might face in the United States.
China has been designated a “Foreign Entity of Concern (FEOC)” under the Inflation Reduction Act (IRA), leading to increased scrutiny of Chinese companies by US regulators.
Momenta, backed by General Motors, one of the top three automakers in the United States, also has ties to Chinese state-owned company SAIC Motor Corp and Yungeng Capital, founded by billionaire Jack Ma.
According to Bloomberg, people close to the matter have revealed that Momenta is working with China International Capital Corp., Goldman Sachs Group Inc., and UBS Group AG on the alleged IPO listing in the United States.
The China-based self-driving firm is estimated to raise between $200 million to $300 million from the share sale, significantly lower than the initial target of $1 billion. Last year, rumors spread that Momenta was considering an IPO in either the US or Hong Kong.
However, given the current geopolitical climate, Momenta’s IPO plans in the United States remain uncertain, and the company may reconsider its options in light of the challenges posed by US-China relations.