Robotaxis — arriving at a future near you(6)

Attracting financing

Investor interest is also fueling the sector's progress.

Pony.ai has secured more than $1.4 billion of financing from both domestic and foreign investors since 2017. The company was valued at $8.5 billion as of October last year.

The investment environment for the industry has been improving since last year, despite fluctuations in previous years, according to the company.

WeRide, based in Guangzhou, Guangdong province, plans to offer 6.45 million American depositary shares at a price range of $15.50 to $18.50 in its upcoming initial public offering, according to a company filing with the U.S. Securities and Exchange Commission in August.

The company reported revenue of 401.8 million yuan in 2023. For the first six months of this year, its revenue was 150.3 million yuan, according to the filing.

WeRide generates most of its revenue from sales of its Level 4 autonomous driving vehicles, "primarily including robobuses, robotaxis and robosweepers, and related sensor suites; and … the provision of L4 autonomous driving and advanced driver-assistance system services, including the provision of L4 operational and technical support services as well as ADAS research and development services", the filing said.

The Society of Automotive Engineers International defines six levels of automation from Level 0 to Level 5. Level 4 means the vehicle can operate itself in most circumstances, while L5, also known as full driving automation, requires no human participation.

All China's robotaxi companies are working on Level 4 vehicles.