Pony AI Accelerates Toward Key Profitability Milestone in Robotaxi Race, Stock Skyrockets 16%

Pony AI just hit the gas—hard. The autonomous vehicle upstart's stock surged 16% as it races toward a crucial profitability threshold in the cutthroat robotaxi market.

Breaking Down the Rally

Investors are betting big on Pony's path to sustainable operations. That 16% pop isn't just random market noise—it's a vote of confidence in their tech stack and business model.

The Road to Profitability

Scaling autonomous ride-hailing isn't for the faint of heart. Pony's navigating regulatory hurdles, tech challenges, and brutal competition while burning serious cash. Hitting profitability would separate them from the pack of perpetually 'almost there' AV companies.

Why This Milestone Matters

Profitability isn't just about bragging rights—it's survival. In an industry where most players are still figuring out how to monetize their tech, reaching this milestone could give Pony a decisive edge in partnerships and expansion.

Wall Street's Take

Analysts are watching—though some remain skeptical about whether any robotaxi firm can truly crack unit economics without human drivers. After all, this is an industry that makes crypto trading look like a predictable business model.

Bottom line: Pony's acceleration has everyone's attention. Whether this run has legs depends entirely on delivering real revenue—not just promises.

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This progress, Wang told WSJ, is due to the company’s efforts to grow its fleet, reduce insurance costs, and expand its user base. Hitting this target will be a major step toward making their technology profitable and will allow them to scale their fleet quickly.

In its most recent quarter, PONY reported $21.46 million in revenue, up 76% year-over-year, and robotaxi service revenue surged by over 300%. On the earnings front, it delivered an adjusted net loss per share of $1.14 compared with a loss of $0.26 per share in the year-ago quarter.

Further, CFO’s comments come after Pony AI disclosed a partnership with Mowasalat, Qatar’s transportation provider, earlier this month. The companies will deploy autonomous vehicles in the country, expanding PONY’s footprint in the Middle East.

China’s Robotaxi Market Heats Up

The race for market leadership in China’s robotaxi sector includes Pony AI, alongside rivals WeRide and Baidu’s (BIDU) Apollo Go. These companies are expanding both domestically, with strong support from the Chinese government, and into international markets like the Middle East and Europe.

So far, Pony AI has produced 400 robotaxis and plans to have a global fleet of 1,000 vehicles by the end of the year. In China, the company is prioritizing the key cities such as Beijing, Shanghai, and Guangzhou, where it can demonstrate commercial viability at scale.

For international expansion, Pony AI is taking a market-by-market approach, aiming to prove profitability in one region before replicating the model elsewhere.

By cutting hardware costs, lowering insurance expenses, and growing its user base, Pony AI seeks to win the robotaxi race.

Is PONY a Buy, Hold, or Sell?

Turning to Wall Street, PONY stock has a Strong Buy consensus rating based on 42 Buys and six Holds assigned in the last three months. The average Pony AI share price target is $872.98, which implies an upside of 13.2% from current levels.