By Jiahui Huang

Shares of Chinese robotaxi companies which listed in Hong Kong this week were sharply lower, reflecting the market's ongoing concerns about their profitability.

Shares of Pony AI and WeRide, which were listed on the Hong Kong stock market on Thursday, were down 13% and 12%, respectively, by midday Friday. The benchmark Hang Seng Index was down 1.1%.

The losses added to the weakness on their debut, when Pony AI and WeRide lost 9.3% and 10%, respectively.

The two had priced their Hong Kong offerings at a premium, which limited any potential gains for their shares. The general market's decline also weighed on the stocks, according to Angus Chan, the head of auto research at BOCOM International.

Both robotaxi companies have yet to turn a profit and their current fleet sizes--in the low thousands--have made investors a little hesitant as profits may be a while away.

The industry also faces uncertainties from government regulations, safety issues and consumer acceptance, despite the accelerated expansion of services this year.

"Companies that have access to developed markets with more data and higher margin potentials may have better chance to turn profitable faster," CCB International analyst Qu Ke said.

The costs to manufacture robotaxis could fall 30% to 40% in the long term, HSBC Global Research analysts wrote in a recent note.

"As fleets expand, robotaxis should become more visible, improving public acceptance and usage rates," they said.

Write to Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

November 06, 2025 23:25 ET (04:25 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.