China's Robotaxi Showdown: Pony AI and WeRide Crash on $1.1 Billion Hong Kong Debut

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After months of anticipation, China's robotaxi champions Pony AI Inc. NASDAQ:PONY and WeRide Inc. NASDAQ:WRD finally hit the Hong Kong marketand immediately lost traction. Pony AI tumbled as much as 15% to HK$118.80, while WeRide slipped by the same margin to HK$23, even as the pair raised over $1.1 billion in combined proceeds. The timing could be part of the story. Hong Kong's rally earlier this year has faded fast, with the Hang Seng now among the worst-performing benchmarks in recent weeks. They're either six months too late or a year too early, said Sandeep Rao at Leverage Shares, reflecting investor unease with lofty tech valuations in a market still regaining its footing.Pony AI's HK$6.7 billion ($863 million) raise and WeRide's HK$2.4 billion deal give both unprofitable firms the cash to push deeper into autonomous-driving development. The two sit at the center of China's driverless-car race alongside Baidu's Apollo Gofirms now outpacing American peers in bringing robotaxi programs from test tracks to commercial roads. BloombergNEF data show Chinese operators expanding aggressively beyond home turf, with projects already active in Dubai, Abu Dhabi, and Singapore, and ambitions to enter Germany and the UK. Analysts at Daiwa Capital Markets see long-term promise despite the rocky debut, arguing that both firms could represent rare, investable exposure to global autonomous-driving innovation.But the drama didn't stop at pricing. Pony AI and WeRide listed on the same day, intensifying a rivalry that spilled into public view. WeRide CEO Tony Han accused Pony AI of misleading investors, asserting his firm's real numbers would prove its strength. Pony AI's James Peng brushed off the jab, calling it a great thing that both went public together, seeing it as validation of a fast-maturing market. The dueling listings may have clouded sentiment in the short run, but as the technology matures, analysts suggest investors could be witnessing the first chapter of China's global autonomous-driving ascent.

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