Why WeRide Stock Plummeted Today

WeRide (NASDAQ: WRD) stock got crushed Wednesday despite a bullish day of trading for the broader market. While the Nasdaq Composite index gained 2.5% in the session, the autonomous driving specialist's share price closed out the day down 17%.

The big sell-off for WeRide stock appears to have been spurred by Pony AI revealing its robotaxi lineup at the Shanghai International Automobile Industry Exhibition today. Pony AI stock rose 30.5% higher in today's trading.

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WeRide stock sinks as Pony AI soars

WeRide and Pony AI are both autonomous driving companies with headquarters in China so it's not surprising that investors are concerned about competitive overlap. Investors are clearly excited about the technologies that Pony AI demonstrated today, and it's possible that the strength of its offerings could pressure other players in the market.

WeRide stock soared earlier this year after Nvidia disclosed that it had a small investment position in the company, but it hasn't been able to hold on to those gains. On the heels of today's big sell-off, WeRide stock is now down roughly 48% across 2025's trading.

What's next for WeRide?

Even though WeRide and Pony AI are both autonomous driving tech companies, the two businesses are significantly differentiated. Thus far, Pony AI's efforts in the space have mostly been concentrated on robotaxis. Meanwhile, WeRide has been generating most of its sales from self-driving street cleaners and looking to self-driving busses as a key growth driver. It's certainly possible that the two companies will increasingly compete, but Pony AI's promising robotaxi showing today doesn't necessarily mean that WeRide's growth story will be disrupted.

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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.