Shares of Pony AI Inc (PONY) plunged 5.18% in pre-market trading on Wednesday following reports of a fire incident involving one of its autonomous vehicles. The Chinese robotaxi operator confirmed that one of its cars caught fire while being handled by service staff after a system malfunction, though no passengers were onboard and no injuries were reported.
The incident occurred on Tuesday when a Pony.ai vehicle operating without a human driver showed an "abnormal status," prompting an emergency stop. Service personnel arrived at the scene within two minutes, but during the handling process, the vehicle caught fire. The specific cause is currently under investigation, according to the company.
This fire incident could fuel further concerns over the safety of autonomous driving in China, potentially impacting investor confidence in the sector. It comes at a time when Chinese regulators have been moving to tighten the marketing and promotion of such features following recent accidents involving autonomous vehicles.
In a separate development, Pony AI has reportedly filed confidentially for a Hong Kong listing to raise additional capital for business expansion. However, this potentially positive news seems to have been overshadowed by the safety concerns arising from the fire incident, as reflected in the stock's pre-market decline.
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