• The twin robotaxi firms tumbled more than 12% each on debut, erasing early optimism after raising a combined $1.2 billion in Hong Kong listings.
• Analysts said the offerings may have been six months too late or a year too early to attract investors amid cooling sentiment in Chinese tech stocks.
• The weak debut could weigh on their U.S.-listed shares, as traders watch for signs of renewed interest in autonomous-driving names.

WeRide and Pony AI plunged on their Hong Kong stock market debuts on Thursday, erasing early optimism around China's robotaxi leaders. The weak listings could pressure their U.S.-listed shares, which have been sensitive to investor sentiment toward autonomous driving firms.

Weak Debuts Reflect Cooling Sentiment

WeRide fell 12.2% to HK$23.8, while Pony AI slipped 14% to HK$119.60 against their respective issue prices of HK$27.10 and HK$139. The sharp declines erased early optimism surrounding the twin listings, which raised a combined HK$9.6 billion ($1.2 billion) for the two companies.

The slump adds to signs of market fatigue after a strong first half for Hong Kong equities. The Hang Seng Index, once one of the world's best-performing benchmarks this year, has turned into one of the worst over the past month as investors grow wary of lofty valuations and unprofitable tech offerings.

An analyst at Leverage Shares Plc noted that the listings may have been six months too late or a year too early to attract investor attention, according to a Bloomberg report.

Funds Earmarked For Robotaxi Expansion

Both companies said proceeds will be used to develop Level 4 autonomous driving systems and expand their robotaxi fleets.

WeRide, founded in 2017, operates over 1,500 autonomous vehicles, including 700 robotaxis, while Pony AI runs more than 720 units and plans to reach 1,000 by the end of the year.

The rivals' same-day listings were unusual and underscored the competition in China's autonomous mobility sector. During the offering process, WeRide accused Pony AI of providing inaccurate information to investors, a claim its CEO Tony Han repeated in a Bloomberg TV interview.

Meanwhile, Pony AI CEO James Peng said he was“super happy” about both firms being listed together, calling it a sign the market is recognizing the sector's long-term potential.

Robotaxi Growth Meets Market Reality

China's autonomous-driving startups, including Baidu's Apollo Go, have expanded faster than U.S. peers such as Waymo and Cruise, launching commercial robotaxi services across Dubai, Abu Dhabi, and Singapore and planning entries into Germany and the U.K.

Despite the rough start, Evelyn Zhang, an analyst at Daiwa Capital Markets, said both firms remain attractive for long-term investors.

“Pony AI and WeRide have presented the market good plans to monetize their technology,” she said, adding that they are now“scarce investable assets” in the global autonomous driving space.”

Stocktwits Users Warn Of China's Overcrowded Robotaxi Market 

On Stocktwits, retail sentiment was 'neutral' for WeRide and 'bearish' for Pony AI, with both seeing 'high' message volume.

One user said that China's autonomous vehicle sector had grown increasingly crowded, with fierce competition and unprofitable players making it hard to identify long-term winners. They added that the current heavy trading volume likely reflected speculative day trading rather than serious investment.

Another user observed that WeRide's Hong Kong price had simply aligned with its U.S. valuation, calling the sell-off“a way to shake out retail” and predicting headlines would frame it as a“failed IPO.”

While WeRide's U.S.-listed stock has declined 37% so far in 2025, Pony AI's stock climbed 13% over the same period.

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