WeRide Inc. (WERIDE-W) saw its stock price plummet by 5.33% in pre-market trading on Friday, continuing a downward trend following its disappointing debut on the Hong Kong Stock Exchange earlier this week. The autonomous driving company's struggles reflect broader challenges facing the sector as investors grow increasingly cautious about the industry's near-term commercial viability.

WeRide's weak performance comes on the heels of its dual primary listing in Hong Kong on November 6, where it opened at HK$24.98, down 7.8% from its initial public offering (IPO) price of HK$27.10. Despite a slight rebound by the close of its first trading day, the company's market valuation stands at HK$25.05 billion, significantly below expectations. This lackluster debut, coupled with similar struggles faced by competitor Pony AI Inc (PONY-W), signals growing investor skepticism towards the autonomous driving sector.

Industry analysts attribute the sector's challenges to a combination of factors. Wang Chao, founder of Wenyuan Think Tank, describes the current state of Robotaxi technology as "the darkest hour before dawn," where technical feasibility has been proven but commercial viability remains uncertain. The autonomous driving industry is experiencing a phase of divergence, with total funding in 2025 dropping sharply to RMB 22.85 billion from RMB 76.75 billion in 2024. As the market becomes more rational, investors are shifting from broad bets to targeted investments, focusing on companies with strong technology, viable business models, and effective crisis management capabilities. WeRide's recent stock performance suggests that it may be struggling to convince investors of its long-term potential in this increasingly competitive and scrutinized market.