Shares of Pony AI Inc. (NASDAQ:PONY) initially dropped 1% before rebounding over 1% following a critical report from Grizzly Research that questioned the robotaxi company’s operational integrity and technology.
Grizzly Research, which conducted on-the-ground testing of Pony’s robotaxi service in China, described the company—public since November 2024—as offering “very little” and labeled it a “smoke and mirrors show.” The report included serious allegations from a purported insider claiming that Pony AI falsified data related to its self-driving software, with management allegedly aware of and concealing the issue.
The research firm also criticized Pony AI’s customer experience, stating it had “the least pick-up spots, longest waiting time, and overall worse customer experience” compared to rivals like Baidu (NASDAQ:BIDU) Apollo and WeRide. Regulatory hurdles were also highlighted, including the revocation of Pony’s permit for driverless vehicle testing in California after a crash, and a similar incident in China in May 2025 that led to a temporary suspension of service.
Further concerns were raised regarding the company’s financial health, with Grizzly Research noting a deterioration since its IPO and suggesting a significant portion of revenue stems from an entity connected to the Chinese military. Additionally, U.S. senators have reportedly called for Pony’s delisting from American exchanges due to alleged close ties to the Chinese government.
The report arrives amid investor speculation about former Uber CEO Travis Kalanick’s potential involvement in Pony AI’s U.S. operations.
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