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California Suspends Pony.ai Driverless Testing Permit

December 14, 2021
California Suspends Pony.ai Driverless Testing Permit

Pony.ai Pauses Driverless Testing in California Following Incident

Pony.ai, a Chinese startup focused on autonomous driving technology and maintaining a U.S. based office, has temporarily halted operations of its driverless pilot program in California. This suspension occurred approximately six months after receiving regulatory approval for testing autonomous vehicles without a human safety driver present.

DMV Suspension and Incident Details

The California Department of Motor Vehicles (DMV) informed Pony.ai on November 19th of the suspension of its driverless testing permit. This action followed a collision reported in Fremont on October 28th, as confirmed by the DMV in a statement to TechCrunch.

Currently, Pony.ai has ten Hyundai Kona electric vehicles registered under the suspended driverless testing permit. Importantly, this suspension does not affect the company’s existing permit allowing testing with a human safety driver.

Collision Report and Company Response

According to the collision report submitted by Pony.ai, the incident transpired on a clear morning. The autonomous vehicle was actively changing lanes while operating in fully autonomous mode at the time.

A Pony.ai spokesperson stated to TechCrunch: “One of our vehicles was involved in an incident in Fremont, California, resulting in contact with a lane divider and a street sign. No other vehicles were involved, and thankfully, no injuries were sustained.”

The spokesperson further added that the company promptly initiated a thorough investigation and is actively communicating with the California DMV regarding the event.

Unique Incident and Implications

While previous crashes involving autonomous vehicles have been documented, the majority occurred either during manual operation by the safety driver or when another vehicle impacted the autonomous vehicle from behind. This particular incident is noteworthy as it involved a vehicle operating in autonomous mode without the involvement of any other vehicles.

This event raises questions regarding the current capabilities of Pony.ai’s autonomous driving systems. The company reports its AVs have accumulated over 750,000 real-world miles of testing in California since 2017.

Company Background and Recent Challenges

Established in 2016 by former Baidu employees, Pony.ai is a key player among autonomous vehicle startups with research and development teams and testing fleets located in both China and California.

The company has secured substantial investment from prominent firms such as Toyota and Sequoia Capital, raising over $1 billion in funding and achieving a valuation of $5.3 billion as of February. Recently, alongside Baidu, it received approval to operate commercially drivered autonomous cars within a designated demo zone in Beijing.

However, Pony.ai has encountered challenges in recent months. Plans for a listing via a SPAC in New York were put on hold after failing to obtain assurances from Beijing regarding potential targeting by the U.S. government, as reported by Reuters in August.

Furthermore, TechCrunch reported last month that the company’s autonomous trucking division experienced the departure of several key executives, leaving the unit’s future uncertain. As competition intensifies, Pony.ai faces pressure to demonstrate its technological competitiveness and long-term commercial viability to its investors.