AI has been driving headlines recently, no secret there – but it is also driving advances in a wide range of tech and industrial sectors, from cloud computing to the venerable taxi. On that last, advances in AI, along with new sensor technology, have brought autonomous vehicles from science fiction into reality, and numerous companies are working to turn autonomous cars into robotaxis, an innovation that promises to completely disrupt the ride-hailing business.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
In many ways, China is leading the way. The Asian giant is supporting the robotaxi sector through governmental regulations and monitoring bodies to address issues of public trust and confidence. This backing has helped grow a fleet of more than 4,000 robotaxis operating across major cities in trial programs, with several regions now permitting fully driverless rides in certain zones.
UBS analyst Paul Gong sees the total addressable market for robotaxis in China hitting $183 billion by the late 2030s and believes companies with cutting-edge tech and nimble operating models will capture the biggest slices. Guangzhou’s 2024 government report, for example, showed Pony trailing only Apollo in total autonomous driving distance, yet using self-driving mode for a greater share of its tests. The city’s last company-specific disclosure in 2022 also ranked Pony highest for kilometers driven per human intervention – a key measure of reliability.
Gong backs this view by naming two Chinese robotaxi stocks he believes are best positioned to ride the growth wave. Other analysts seem to agree – TipRanks data shows both carry a ‘Strong Buy’ consensus. Let’s dive in.
Pony AI (PONY)
The first robotaxi stock we’re looking at is Pony AI, an autonomous vehicle firm with dual headquarters – one in Guangzhou, China, and the other in Fremont, California, both known hubs for high tech. Founded in 2016, Pony has quickly risen to the forefront of China’s autonomous vehicle and robotaxi sector, building its technology around a proprietary Virtual Driver package. This vehicle-agnostic system can be installed on a wide range of makes and models, giving the company a broad canvas for deployment.
That flexibility is central to Pony’s strategy. By focusing on control and sensor technology rather than tying its platform to specific vehicles, the company can target multiple markets at once. Its Virtual Driver package is already integrated into three distinct business lines – Robotaxi, Robotruck, and Personally Owned Vehicles – supporting both mass production and mass adoption.
This multi-pronged approach is paying off. Pony has already built an impressive operational footprint, with a fleet of over 190 robotrucks covering intercity freight routes in regions like Beijing and the Yangtze and Pearl River deltas, alongside 270-plus robotaxis serving major cities such as Guangzhou, Shenzhen, Beijing, and Shanghai. More than 300,000 users are registered on the PonyPilot mobile app, and just last month the company rolled out its Gen-7 robotaxis in Beijing – marking the first major-city deployment of its latest model.
Pony’s scale is reflected in its mileage data. The company has logged more than 39 million cumulative autonomous kilometers with safety drivers on board, plus over 7.3 million kilometers in fully driverless mode. These metrics underline both its operational maturity and its readiness for commercial expansion.
That growth trajectory will be in sharper focus when Pony reports second-quarter results before the U.S. market opens on Tuesday, August 12, 2025. In 1Q25, revenue climbed nearly 12% year-over-year to $13.98 billion, though non-GAAP net losses widened 10.5% from last year to $28.4 million.
Pony’s stock has only been traded publicly on Wall Street since November of last year. In that time, it has come to the attention of UBS’s Paul Gong, who notes that the company’s early entry into the robotaxi field has given it a head start.
“Pony is the first and only robotaxi company to start commercial fee-charging and driverless robotaxi operations in all four tier 1 cities in China. During our test drives in Guangzhou and Shenzhen, Pony impressed us with its capability in handling complicated road situations without human intervention… We forecast a revenue CAGR of 96% in 2025-30. We forecast Pony’s 2030 revenue to reach US$2.3bn, implying a c30% market share in China’s robotaxi market,” Gong noted.
These bullish expectations underpin Gong’s Buy rating and $20 price target, which suggests a ~34% upside over the next year. (To watch Gong’s track record, click here)
Wall Street’s broader sentiment matches his optimism – all 4 recent analyst reviews are positive, giving Pony a unanimous Strong Buy consensus. With shares currently at $14.94 and the average target sitting at $21.75, analysts see the potential for a 45% gain in the year ahead. (See PONY stock forecast)
WeRide (WRD)
The second Chinese robotaxi stock on UBS’ radar is WeRide, another Guangzhou-based firm with an international presence – with offices in San Jose, Abu Dhabi, and Singapore, as well as across China. Like Pony above, WeRide’s stock began trading on Wall Street late last year. And, also like Pony, the company has built its autonomous vehicle strategy around a flexible platform that can be adapted to a wide range of vehicle sizes and types – a versatility that allows it to tackle multiple transportation niches at once.
That strategy takes shape in the company’s WeRide One autonomous vehicle platform, which is anchored on four pillars: infrastructure and basic capabilities, data collection and analysis, technology solutions, and driving operations. The last serves as the synthesis, integrating AI, advanced sensors, real-time data feedback, and iterative system improvements to keep the vehicles learning and adapting. This approach has powered WeRide’s expansion, with road tests and operations in more than 30 cities across 10 countries, and autonomous driving licenses in six key markets: China, Singapore, Saudi Arabia, the UAE, France, and the US.
After more than 2,000 days of operating its driverless fleet, WeRide has built an extensive data foundation to fuel its AI training model. The platform now supports five product lines – the Robotaxi, Robobus, Robovan, Robosweeper, and WePilot for personal automobiles – giving the company a broad commercial footprint. Its fleet of over 1,200 vehicles has collectively logged more than 40 million kilometers of autonomous driving mileage.
That growing footprint is translating into financial momentum. Last week, WeRide reported 2Q25 results showing a 61% year-over-year jump in total revenue to $17.8 million. Robotaxi revenue led the surge, up an 836% from 2Q24 to $6.4 million. Losses remain part of the picture – a common feature for companies in high-growth tech sectors – coming in at 18 cents per American Depositary Share on a non-GAAP basis.
UBS’ Paul Gong sees these results as just the beginning, noting: “Leveraging a diversified product offering, including L2-L4 robotaxis, robobuses, robosweepers and robovans, WeRide has pioneered L4 vehicle deployment across 30 cities in 10 countries and started operations of L4 robotaxis in Beijing, Guangzhou and Shanghai… During our test drives in Guangzhou and Shenzhen, WeRide’s robotaxis offered smooth and efficient rides, with a strong emphasis on passenger safety, which we believe could attract consumers as the operating fleet expands… We like WeRide’s pragmatic overseas strategy and top-tier robotaxi technology, and we forecast a 2025- 30E revenue CAGR of 71%m.”
Gong backs his bullish view on WRD with a Buy rating and a $12 price target, implying ~31% upside over the coming year.
While WRD hasn’t yet drawn wide analyst coverage, the few who have weighed in share Gong’s optimism – the stock holds a unanimous Strong Buy consensus based on 3 recent reviews, with an average price target of $15.33 suggesting a ~67% upside ahead. (See WRD stock forecast)
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.