China’s Robotaxi Firms Sink on Hong Kong Debut Amid Market, Safety Concerns

Hong Kong — Shares of Chinese autonomous driving start-ups Pony.AI and WeRide plunged on their Hong Kong debut Thursday, despite raising a combined US$1.1 billion, as analysts warned that China is still not ready for a large-scale rollout of robotaxis.

The two companies, already listed in New York, are seeking to expand globally amid rising competition from tech giant Baidu.

But investor enthusiasm cooled quickly — Pony.AI fell 14.4% to HK$119 after pricing its shares at HK$139 to raise HK$6.71 billion (US$860 million). WeRide dropped 13.9% to HK$23.30, after setting its price at HK$27.10 to raise HK$2.39 billion.

Both companies said proceeds from the listings would fund continued development of autonomous driving technology and commercialization efforts.

Mixed Signals for China’s Self-Driving Future

Hong Kong has emerged as the world’s top IPO market in 2025, and Beijing is eager to position autonomous vehicles as a strategic growth industry.

“This is not only a milestone for both companies, but also a significant landmark for the whole self-driving industry,” said James Peng, CEO of Pony.AI, during the listing ceremony.

Still, challenges persist. Pony.AI’s prospectus revealed continuous losses since 2022, with Peng projecting profitability no earlier than 2028.

WeRide’s CEO Tony Han said the company aims to “contribute to the advancement of autonomous driving in China, and even the world.”

Booming Market, Growing Concerns

China has aggressively promoted driverless taxis as part of its AI-driven mobility strategy. According to consultancy Frost & Sullivan, the country’s robotaxi market is projected to surge from US$70 million in 2025 to US$39.4 billion by 2030, and a staggering US$183 billion by 2035 — potentially accounting for over half of the global market share.

Major ride-hailing platforms Didi and Caocao have also announced plans to integrate autonomous vehicles into their operations.

However, experts warn that safety issues, evolving regulations, and public trust could slow progress.

“Regulations are changing fast,” said Tom Nunlist, tech policy analyst at Trivium China. “Officials are tightening rules due to over-marketing and accidents linked to misuse. They’re really putting tighter bounds on how these systems operate and can be deployed.”

China’s Ministry of Industry and Information Technology (MIIT) has pledged to accelerate the rollout of standards for driver-assistance and fully autonomous systems in the coming years.