Pony AI Stock Plummets 28.14% in Two Days, Trading Volume Ranks 147th Amid Regulatory Concerns and Hong Kong Listing Rumors

On June 3, 2025, Pony AI Inc. (PONY) experienced a significant drop in its stock price, falling by 20.69% over two consecutive days, with a total decline of 28.14%. The company's trading volume surged to 6.09 billion, ranking it 147th in the market for the day.

Pony AI Inc. has faced a series of setbacks in its autonomous vehicle development and regulatory challenges, leading to a decline in investor confidence. The company's recent confidential application for listing on the Hong Kong stock exchange has raised concerns among investors about the potential implications of this move. The heightened scrutiny in the U.S. over Chinese firms, with congressional committees urging the SEC to delist various companies, has further exacerbated these concerns.

Pony AI's financial landscape presents a mixed picture. The company reported total revenue of $75 million, with a revenue per share of $0.27. While the enterprise value exceeds $5.47 billion, indicating significant market interest, the price-to-sales ratio of 82.64 suggests that the company may be overvalued according to traditional measures. The company holds $535 million in cash reserves, but its retained earnings are in the negative at approximately -$1.28 billion, raising questions about its financial health.

The confidential filing for a Hong Kong listing has sent ripples across investor circles, as it could diversify capital sources and enrich growth projects. However, geopolitical tensions, particularly between the U.S. and China, could sway investor confidence. The call for delisting firms with perceived ties to foreign governments has placed a bullseye on several large companies, including Pony AI, as they navigate between growth ambitions and external political factors.

Pony AI's stock charts reflect a volatile journey with peaks and troughs that mirror market sentiment swings. The recent sell-off following the news of the confidential filing led to market jitters and a drop in share value. Over a recent span, share prices slid from $19.26 to $14.47, indicating a sharp recalibration by traders reacting to emerging news reports. The company's historical stock behavior also shows how sentiment and concerns can impact equity values quickly and sharply.