Pony AI (PONY), one of China’s top robotaxi firms, is close to achieving a key profitability milestone, The Wall Street Journal reported. According to CFO Leo Haojun Wang, the company is on track to reach “single-unit economics break-even,” or profitability per vehicle, by the end of this year or early 2026. PONY stock was up 15.8% during Friday’s trading session.
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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 its 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, the CFO’s comment comes 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 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.
