Pony AI Inc (PONY) saw its stock plummet 5.18% in a 24-hour period, as investors reacted to news of a fire incident involving one of the company's autonomous vehicles. The Chinese robotaxi operator confirmed that a car caught fire while being handled by service staff after a system malfunction, although no passengers were onboard and no injuries were reported.
According to the company, the incident occurred when a Pony.ai vehicle operating without a human driver showed an "abnormal status," triggering an emergency stop. Service personnel arrived at the scene within two minutes, but during the handling process, the vehicle caught fire. The specific cause of the fire is currently under investigation, raising concerns about the safety of autonomous driving technology.
This incident could have broader implications for the autonomous driving sector in China. It comes at a time when Chinese regulators have been moving to tighten the marketing and promotion of such features following recent accidents involving autonomous vehicles. The fire incident may fuel further concerns over the safety of self-driving cars and potentially impact investor confidence in the sector. Despite reports of Pony AI confidentially filing for a Hong Kong listing to raise additional capital, the positive impact of this news seems to have been overshadowed by the safety concerns arising from the fire incident.
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