Pony AI Inc. (NASDAQ:PONY) shares plunged 5.18% in pre-market trading on Wednesday, extending the previous day's losses as investors continue to take profits following recent gains. The autonomous driving technology company has been in the spotlight due to its expansion into the robotaxi industry and improving financial prospects.

On Tuesday, PONY's stock had already dropped 6.49% to close at $9.65 per share. The sell-off came despite positive news surrounding the company's progress in autonomous driving technology and potential partnerships. According to reports, Pony AI's chief technology officer, Lou Tiancheng, stated that the company is nearing profitability after significantly reducing the costs of materials. Tiancheng claimed that Pony AI can now build its autonomous driving system for 70% less than before, marking a substantial improvement in the company's cost structure.

Despite the current downward trend, Pony AI's long-term prospects remain intriguing. The company recently announced plans to develop autonomous driving technology and offer robotaxi services. CEO James Peng revealed that Pony AI is in talks with Tencent Cloud to potentially offer robotaxi services through WeChat and other applications, leveraging Tencent's massive user base and cloud infrastructure. However, it seems that investors are currently more focused on short-term gains, leading to the ongoing sell-off in pre-market trading.