Pony AI Inc (PONY) shares plummeted 5.41% in intraday trading on Friday, despite recent positive news about a collaboration with Chinese tech giant Tencent. This unexpected downturn comes after the stock had surged by 39% in the previous trading session and an additional 14% in pre-market trading.
The autonomous driving startup announced a partnership with Tencent Holdings to accelerate the commercialization of robotaxi services. As part of this collaboration, Pony.ai's autonomous driving taxi services will be integrated into Tencent's mobile app network, including WeChat and Tencent Map. Additionally, the two companies will work together on research and development of Level 4 self-driving technologies, leveraging Tencent's expertise in cloud computing, big data, and artificial intelligence.
Despite the seemingly positive news, the stock's sharp decline suggests a possible "sell the news" effect or profit-taking by investors following the recent surge. Pony AI's stock price had increased by 82% over the past two days, reaching $7.57. The company, which went public on Nasdaq last November, is still working towards profitability, with CEO Peng Jun stating that they expect to break even by 2028 or 2029. This long-term outlook, combined with the recent volatility, may have prompted some investors to cash out their gains, leading to today's downward movement.
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