Pony AI shorted at Grizzly Research; concerns raised over operations

Published 10/07/2025, 14:48
© Reuters

Investing.com -- Pony Ai Inc (NASDAQ:PONY) stock fell 1%, then gained up to 0.3%, after Grizzly Research published a critical report questioning the robotaxi company’s operations and technology capabilities.

The research firm alleged that Pony AI, which went public in November 2024, has "very little to offer" and described it as a "smoke and mirrors show." Among the most serious accusations, Grizzly claimed there are allegations from an apparent insider that the company falsified data for its self-driving software algorithm, with management allegedly aware of and covering up the issue.

Grizzly Research conducted on-the-ground testing of Pony’s robotaxi service in China, reporting that the company appeared to have "the least pick-up spots, longest waiting time, and overall worse customer experience" compared to competitors like Baidu (NASDAQ:BIDU) Apollo and WeRide.

The report also highlighted regulatory challenges, noting that Pony’s permit to conduct driverless autonomous vehicle testing in California was previously revoked following a crash. A similar incident reportedly occurred in China in May 2025, resulting in temporary service suspension in that district.

Additionally, Grizzly raised concerns about Pony AI’s financial situation, claiming its financials have worsened since its IPO and that a significant portion of its revenue comes from an entity "directly related to the Chinese military." The research firm also noted that U.S. Senators have called for Pony’s delisting from U.S. exchanges due to its alleged close ties with the Chinese government.

The report comes as Pony AI has recently attracted investor attention due to rumors about former Uber Technologies Inc (NYSE:UBER) CEO Travis Kalanick’s potential interest in the company’s U.S. business.

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