Shares of Pony AI (PONY), a Chinese company that builds self-driving cars, surged at the time of writing after announcing plans to triple the size of its robotaxi fleet by the end of 2026. Right now, the company has around 961 robotaxis and wants to reach 1,000 by the end of this year. Still, its long-term goal is to grow the fleet to more than 3,000 vehicles. Currently, Pony AI offers paid robotaxi services in four major Chinese cities: Beijing, Shanghai, Guangzhou, and Shenzhen.
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However, the company also wants to expand internationally. Indeed, it’s entering eight more countries, including Qatar and Singapore, by teaming up with local partners and big ride-hailing companies like Bolt and Uber (UBER). Nevertheless, while revenue is rising quickly, so are costs. In Q3, Pony AI made $25.4 million, a 72% increase compared to $14.8 million a year ago.
Most of that came from robotaxi rides, self-driving trucks (called robotrucks), and technology licensing. But the company still spent more than it made, reporting a $61.6 million net loss. This is 46% more than last year. As of September 30, it had $587.7 million in cash and short-term investments, down from $747.7 million in Q2. Half of that drop came from a one-time investment with Toyota (TM) to help build and launch Pony AI’s newest self-driving vehicle model.
Is PONY Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on PONY stock based on 36 Buys, five Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average PONY price target of $29.53 per share implies 119% upside potential.
