Two of China’s leading autonomous driving firms, Pony Ai and WeRide, made bold entrances into the Hong Kong Stock Exchange this week with widely anticipated IPOs. However, their first hours as publicly traded companies resulted in a sharp fall in stock prices, surprising investors looking to ride the self-driving wave.
Dual IPO Raises $1.2 Billion, But Debut Turns Sour
Both companies chose a dual listing strategy after earlier appearances on Nasdaq in late 2024. Their combined fundraising in Hong Kong this week totaled nearly $1.2 billion—Pony Ai raised about $863 million, while WeRide’s haul reached $308 million. Despite the successful capital influx, equities dropped fast as Pony Ai’s shares took an 11% hit, and WeRide’s stock declined by about 8% moments after the opening bell.
Founders Respond to Market Volatility
“Recent US liquidity issues are temporary,” assured Pony Ai CEO James Peng, addressing media and investors at the listing event. “We raised big funds for commercial expansion. Price slips won’t block our plans,” Peng insisted. WeRide CEO Tony Han added, “Shares go up and down. Long run, we trust our strategy. We’re here to grow, for real,” Han noted in multiple interviews.
US Market Trends Affect HK Trading
Their rough Hong Kong debuts directly mirrored falls in New York trading only a day earlier: WeRide shares lost 5.2%, while Pony Ai slipped 2% on the Nasdaq. Hong Kong’s broader Hang Seng Index, meanwhile, bucked the trend with a 0.5% rise. The sector-specific investor caution showed the autonomous driving market’s unique perceived risk.
Capital Targeted for Scaling, Talent, and Tech
Both startups stressed their ambitions: Pony Ai aims to grow robotaxi fleets and logistics operations with new Gen-7 autonomous vehicle models that cost 70% less to produce than prior generations. WeRide plans to boost hiring, supercharge computing power, and accelerate global expansion, expecting tech breakthroughs and international sales pushes soon.
IPO Wave Shows Hong Kong Leads, But Risks Remain
Hong Kong is the world’s busiest IPO market this year, with $31B raised and more listings than New York or Nasdaq. The listings mark an important milestone for China’s self-driving vehicle pioneers. Yet, the first-day stock tumble reveals lingering skepticism about scaling revenue, regulatory approval, and technology trust among investors.
Company Milestones and Sector Impact
Pony Ai reports 55 million+ kilometers driven autonomously (Level-4 permits in Beijing, Shanghai, Guangzhou, and Shenzhen) and significant hardware cost reductions, promising more affordable robotaxis for wide release. WeRide joins as the first robotaxi firm dually listed on Nasdaq and HKEX, aiming at more accessible shares for global buyers.
CEO Optimism Despite Losses
Peng summarized Pony Ai’s outlook: “We’re opening up new ways for cities to move. This listing links us with a global audience and new resources,” he said. For WeRide, Han told Fortune, “We see dual listing as a step to help more investors join, no matter where they are. Tech for good—robotaxis for real life,” Han said.
Real Risks and Forward Path
Investor questions remain about mass-market rollouts, profitability, and regulation for self-driving technology. Pony Ai and WeRide promise aggressive scaling and ecosystem building. Only time will show if early stumbles turn to industry wins, but both founders project unwavering confidence about transforming urban mobility.
(Source: MarketScreener, US News, Channel News Asia, The Edge Malaysia)
