Shares of Pony AI Inc (PONY) surged 11.69% in Tuesday's trading session, following reports that Uber Technologies Inc. is planning to invest in the company's upcoming Hong Kong listing. This significant boost comes as the autonomous driving technology firm seeks to raise additional capital to fuel its growth and expansion plans.
According to sources familiar with the matter, Uber may invest approximately $100 million in Pony AI's share sale in Hong Kong. This potential investment demonstrates Uber's continued interest in the autonomous driving sector and its confidence in Pony AI's technology and market position. The Hong Kong listing, which follows Pony AI's U.S. IPO last year, aims to raise up to $972 million before any upsizing option.
Pony AI plans to use the proceeds from its Hong Kong listing for large-scale commercialization of its Level 4 autonomous driving technology in both robotaxi and robotruck services, as well as for research and development. The company, which operates one of China's largest Level 4 robotaxi fleets, is positioning itself as a leader in the rapidly evolving autonomous driving market. Investors appear to be optimistic about Pony AI's growth prospects and the potential impact of Uber's investment, driving the stock's significant rally.