California suspends driverless testing permit for tech firm Pony.ai

SAN FRANCISCO Reuters - A California regulator has suspended a driverless testing permit for a tech company called Pony.ai after an accident, the first time it has issued such a suspension.

A Pony.ai vehicle operating in autonomous mode hit a road center divider and a traffic sign in Fremont after turning right, according to the technology firm's accident report filed with the California Department of Motor Vehicles DMV. There were no injuries and no other vehicles involved, the company, backed by Japan's Toyota Motor Corp., said in the report.

Accidents during driverless testing are not uncommon. It was not clear what aspect of this incident prompted the suspension.

On November 19, the DMV notified Pony.ai that the department is suspending its driverless testing permit, effective immediately, after a reported solo collision in Fremont, California, on October 28, the DMV said in a statement.

The suspension does not affect Pony.ai's permit for testing with a safety driver, because of the fact that 10 Hyundai Motor Co Kona electric vehicles are registered under its driverless testing permit.

The suspension came only six months after Pony.ai became the eighth company to receive a driverless testing permit in California, joining Alphabet Inc unit Waymo and Cruise, backed by General Motors Co.

Pony.ai said in a statement that they are cooperating with the California DMV and look forward to addressing any concerns they may have. The firm said that safety is the foundation of its autonomous vehicle technology.

The company, which operates in the United States and China, said that the majority of Pony.ai's testing has been and will continue to be driven by autonomous testing.

Sources told Reuters that the Pony.ai suspended plans for a New York stock listing earlier this year. Sources said that the firm could not be assured by Chinese authorities that it wouldn't be a target of increased regulatory action against Chinese technology companies over management and use of user data.