Chinese robotaxi operator Pony.ai considers different exchanges as US delisting fears develop | USAEMALL.com

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Robotaxi company Pony.ai is considering a secondary listing less than six months after its US IPO, amid mounting concern that Donald Trump’s administration will pursue delistings of Chinese companies.

“It’s nothing concrete yet, but definitely it’s something we’re contemplating,” said James Peng, co-founder and chief executive, in an interview with the Financial Times at this week’s Shanghai auto show. “A lot of factors need to be considered.”

The Toyota-backed company, which makes autonomous driving systems and hopes this year to expand its fleet to 1,000 vehicles, drew a $5.25bn valuation when it raised $260mn on the Nasdaq exchange in November.

The CEO’s comments reflect the uncertainty felt by hundreds of US-listed Chinese companies amid a full-blown trade war. 

Treasury secretary Scott Bessent this month refused to rule out delistings when asked directly, reigniting an issue that was also a feature of Trump’s first administration, when he forced a number of state-backed Chinese companies off the New York Stock Exchange.

“We cannot operate based on some speculation, so for the potential delisting we have to deal with it,” said Peng. “At least nothing concrete really has happened yet.” 

Pressure on American depositary receipts — the method by which Chinese companies such as Alibaba and JD.com have listed in the US — has increased in recent years as relations between the US and China soured.

In 2020, Trump introduced a new law that could remove Chinese companies from US exchanges if they did not comply with audits by the US Public Company Accounting Oversight Board (PCAOB) for three years.

Hong Kong’s finance secretary Paul Chan this month said the territory, which has recently experienced a boom in listings by mainland companies, should be the “first choice” for returning Chinese groups.

Peng did not specify any particular market for a possible secondary listing. “Probably finding a good alternative is necessary,” he said. Asked about Hong Kong, he said it was “always possible”, adding the company’s main focus was its new platform and producing vehicles.

Pony.ai shares soared 30 per cent in New York on Wednesday after it unveiled its latest autonomous driving system at the Shanghai Auto Show, China’s biggest car event of the year.

The company has international growth plans. “We have very strong welcoming signals from some of the markets,” said Peng. “Overall . . . we can see the temperature start changing.”

Peng mentioned possible expansion in Europe, where this month Pony.ai announced it had won a testing permit in Luxembourg, its first breakthrough in robotaxi trials on the continent.

In China, its 300 vehicles are limited to certain parts of China’s biggest cities, though it expects larger service areas to be allowed in the coming years. 

Pony.ai’s valuation has fallen from more than $8bn pre-IPO in 2022 to $1.9bn at Wednesday’s Nasdaq close, on the back of pessimism over the self-driving sector, with valuations of its peers also declining.