China-based autonomous driving firm Pony AI, which is backed by automaker Toyota, filed for an initial public offering (IPO) in the United States on Thursday. This move comes as investor interest in new listings grows, coupled with easing regulatory pressures and favorable market conditions. The filing marks another significant step in the return of Chinese companies to U.S. capital markets, following a period of reduced activity.
Pony AI, in which Toyota holds a 13.4% stake, reported impressive financial growth, with revenue nearly doubling to $24.7 million in the first half of 2024. However, the company posted a net loss of $51.3 million during the same period, a reduction from its $69.4 million loss in 2023. The company operates a fleet of more than 250 robotaxis, with over 33.5 million kilometers of autonomous driving experience, including 3.9 million kilometers of fully driverless mileage.
Despite Pony AI’s growth, analysts caution that the widespread deployment of robotaxis remains years away due to ongoing challenges in ensuring safety and reliability. The technology still faces hurdles, such as responding to inclement weather, navigating complex intersections, and handling unpredictable pedestrian behavior.
Pony AI’s IPO comes after a period of reduced U.S. listings by Chinese companies following Beijing’s 2021 clampdown on offshore capital-raising. However, the market has recently seen a resurgence, with electric vehicle maker Zeekr and courier delivery firm BingEx both listing on the Nasdaq earlier this year.
Pony AI is expected to trade under the ticker symbol “PONY” on the Nasdaq. The company has not yet disclosed the size of the offering. The IPO will be underwritten by Goldman Sachs, BofA Securities, Deutsche Bank, Huatai Securities, and Tiger Brokers.
