Pony AI Inc (PONY-W), a leading autonomous driving company, saw its stock plummet 9.52% in Friday's trading session, continuing a downward trend following its disappointing debut on the Hong Kong Stock Exchange earlier this week. The sharp decline reflects growing investor concerns about the autonomous driving sector's commercial viability and the challenges faced by industry players.

PONY-W's Hong Kong listing on November 6 fell short of expectations, with the stock opening at HK$124, down 10.8% from its initial public offering (IPO) price of HK$139. Despite a slight recovery to HK$126.10 by the close of its first trading day, the company's market valuation of HK$53.88 billion failed to impress investors. The weak performance wasn't isolated, as rival WeRide Inc. (WERIDE-W) also experienced a 7.8% drop in its Hong Kong debut, highlighting the market's increasing rationality towards the autonomous driving sector.

Industry analysts attribute the sector's challenges to the uncertain path to profitability for autonomous driving technologies. Wang Chao, founder of Wenyuan Think Tank, described the current state of Robotaxi as "the darkest hour before dawn," where technical feasibility has been proven but commercial viability remains in question. The autonomous driving industry is experiencing a phase of divergence, with some companies attracting new investments while others face significant hurdles. This sentiment is reflected in the overall decline of industry funding, which has dropped from RMB 76.75 billion in 2024 to RMB 22.85 billion in 2025. As the sector awaits its "ChatGPT moment," investors appear to be reassessing their positions, leading to the recent stock price volatility for companies like PONY-W.