Autonomous driving startup Pony.ai Beijing operations suspended after Robotaxi fire

Pony.ai, a rising player in the autonomous vehicle race, is facing a setback after one of its robotaxis caught fire on a Beijing street last Tuesday—its first major safety incident. Though no injuries were reported, the blaze has ignited service suspensions in China and intensified existing restrictions in the United States.

Videos circulating on Chinese social media showed a Pony.ai robotaxi engulfed in flames on a city street. Local regulators then suspended the company’s tests and services in the capital. The company’s app has since gone dark in affected areas, and there is no official timeline for resumption. The cause of the fire remains under investigation.

News of the fire and regulatory suspension sparked a 10% drop in the company’s shares the day after the incident. Despite the sharp decline, the stock remains up over 25% for the year, reflecting continued optimism about the company’s long-term prospects—though now tempered by renewed safety and regulatory concerns.

Pony.ai operates more than 250 autonomous vehicles across major cities, but this latest incident presents a defining moment. Whether Pony.ai can rebound from the setback—and restore confidence among regulators and investors—will serve as a critical test for the future of the self-driving technology.

With inputs from agencies