Pony AI Inc (NASDAQ: PONY) saw its stock price plummet by 5.01% during intraday trading on Friday, as the autonomous driving company faces serious allegations of misrepresentation and an escalating rivalry with competitors in the lead-up to its Hong Kong listing.
The sharp decline comes in the wake of accusations from WeRide, a key competitor in the autonomous driving space. WeRide's CFO, Li Xuan, publicly criticized Pony AI for allegedly using deliberately disparaging and false information about WeRide in its Hong Kong IPO roadshow materials. Li demanded immediate corrections and threatened legal action, highlighting discrepancies in operational data, technological capabilities, and global presence claims made by Pony AI.
Adding to the controversy, Baidu's investor relations team also joined the fray, indicating their readiness to take legal action against what they termed as an "escalation of falsehoods" by Pony AI. This public dispute has exposed deep-seated tensions within the highly competitive autonomous driving industry, potentially shaking investor confidence in Pony AI's upcoming Hong Kong listing.
The timing of these allegations is particularly damaging for Pony AI, as both it and WeRide are vying to become the first robotaxi stock in Hong Kong, with trading scheduled to commence on November 6. The controversy has overshadowed Pony AI's recent achievement of securing Shenzhen's first citywide permit for fully driverless commercial robotaxi operations, a milestone that would typically be viewed positively by investors.
As the autonomous driving sector continues to evolve rapidly, this public clash between key players highlights the intense competition and the high stakes involved in establishing market leadership. Investors appear to be reassessing the risks associated with Pony AI in light of these developments, leading to today's significant stock price decline.
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