Pony AI Inc. (NASDAQ: PONY), a leading autonomous driving technology company, saw its stock price continue to fall in pre-market trading on Wednesday. The company's shares plummeted 5.18% in the early hours, following a significant drop the previous day.

On Tuesday, PONY experienced a sharp decline of 6.49%, closing at $9.65 per share. This selloff came despite recent positive news surrounding the company's entry into the robotaxi industry and its progress towards profitability. Investors appeared to be taking profits following Monday's surge, which was driven by optimistic reports about the company's future prospects.

The continued downward pressure on PONY's stock price may be attributed to several factors. Firstly, the market might still be digesting the news of Pony AI's planned expansion into robotaxi services, announced last week. While this move presents growth opportunities, it also introduces new challenges and competition in a rapidly evolving sector. Additionally, the broader market volatility and the tendency for investors to be cautious with high-growth tech stocks could be contributing to the sell-off.

Despite the recent price declines, Pony AI Inc. remains a company to watch in the autonomous driving space. The firm's ability to reduce costs in building its autonomous driving systems and its potential partnership with Tencent Cloud for robotaxi services could position it for future growth. However, as evidenced by the current market reaction, investors may be adopting a wait-and-see approach as they evaluate the company's execution of its new strategies in the competitive AI and autonomous vehicle markets.