Autonomous driving might be a race, but the world’s biggest automotive markets are speeding in different directions. In the US, self-driving cars are viewed as a software platform opportunity. Meanwhile, in China they are mostly being seen as a hardware-intensive mobility service.
The recent listings of Pony.ai and WeRide in Hong Kong and the optimistic expectations and valuations attached to Waymo’s and Uber’s ambitions illustrate the divide. Undoubtedly, a large chunk of Tesla’s $1.4tn valuation is accounted for by investors’ faith in Elon Musk’s autonomous driving and robotaxi ambitions. The company continues to trade at more than 200 times forward earnings.
No such exuberance among investors of Pony.ai and WeRide. Shares in both have fallen since their November debuts, even as they pledged to use the funds towards scaling their fleets and advancing Level 4 autonomous driving — technology capable of operating without human monitoring or intervention.