(WS News) – China’s Pony AI said on Wednesday it had raised $260 million in its US initial public offering, valuing the robotaxi startup at around $4.55 billion, the latest to bank on improved investor sentiment in US markets.
The company’s performance could indicate how investors approach China-based firms under the current US administration as both nations compete for dominance in autonomous driving technology.
The IPO also comes after nearly two years of uncertainty following Didi Global’s delisting amid regulatory backlash in China, with Beijing easing tensions by resolving a long-standing audit dispute with the US accounting watchdog in December 2022.
However, the company faces other challenges, including public skepticism about autonomous vehicles, data privacy concerns, and competition from companies, including Elon Musk’s Tesla, which has promised to roll out driverless ride-hailing services to the public in California and Texas next year.
Pony AI has said that its US operations will remain “limited in scope” for the foreseeable future.
Pony AI sold 20 million American depositary shares in the IPO, priced to investors at $13 each. It also raised an additional $153.4 million in concurrent private placement.
The Toyota Motor-backed company’s valuation has come down from $8.5 billion two years ago.
It is expected to start trading on the Nasdaq later on Wednesday.
Analysts caution that widespread robotaxi adoption could take years due to safety and reliability challenges, although China has been quicker to approve trials than the US.
Pony AI remains unprofitable as it invests in expanding operations.
