Pony AI's Q2 Results: Robotaxi Expansion Drives Growth Amid Mixed Investor Reactions

Why Is Pony AI Stock Gaining Tuesday? - Pony AI (NASDAQ:PONY)

China-based Pony AI PONY stock gained on Tuesday after it reported its second-quarter results. Sales of the autonomous driving technology developer grew 75.9% year-over-year (Y/Y) to $21.46 million (153.7 million Chinese yuan), mainly driven by rapid growth in Robotaxi services revenues. Robotaxi services revenue climbed 157.8% Y/Y to $1.5 million in the quarter, primarily attributable to expanding user adoption, growing demand in tier-one cities and an increased fleet of deployed Robotaxi vehicles. Also Read: Pony.ai Gets Green Light For Driverless Robotaxis In Shanghai's Pudong Meanwhile, Robotruck services revenue declined 9.9% Y/Y to $9.5 million, reflecting its proactive operation optimization to focus on high-margin revenues. Gross profit of $3.5 million increased from a loss of $41 thousand Y/Y. Gross margin was 16.1% compared to a loss of 0.3% Y/Y, driven by its focused strategy on prioritizing high-margin revenue sources within Robotaxi and Robotruck services. The company reported a loss of 13 cents (or 0.93 Chinese yuan) per share, compared to a loss of 91 cents in the prior year's quarter. As of June 30, 2025, cash and cash equivalents, short-term investments, and restricted cash stood at $747.7 million. Chairman and CEO Dr. James Peng said the quarter marked a significant milestone in Pony.ai's large-scale production and deployment, reinforcing its leadership in the Robotaxi industry. He said that since starting mass production two months ago, the company has produced over 200 Gen-7 Robotaxi vehicles, keeping it on track to meet the year-end goal of 1,000 vehicles. He noted that Robotaxi revenues more than doubled, with fare-charging revenues surging over 300% Y/Y. As per Peng, the company made significant cost improvements in areas such as remote assistance and vehicle insurance, advancing toward positive unit economics. He said that rapid scaling and operational breakthroughs in all four tier-one Chinese cities, along with expanded operations in Dubai, South Korea, and Luxembourg, positioned the company to accelerate its multi-year growth trajectory in the second half of the year. Pony AI's shares have risen a modest 3.7% this year, a performance likely dampened by ongoing U.S.-China tensions and a cooling electric vehicle market in China. Price Action: PONY shares are trading higher by 4.37% to $15.53 premarket at last check Tuesday. Read Next: Niu Stock Slides As China E-Scooter Boom Fails To Offset Weak Overseas Sales, Mixed Q3 Outlook Photo by Michael Vi via Shutterstock PONYPony AI Inc$15.363.23%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentumN/AGrowthN/AQualityN/AValue7.34Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

What's Going On With Pony AI Stock Monday? - Pony AI (NASDAQ:PONY)

Pony AI Inc. PONY, a Chinese autonomous driving startup, is drawing strong support from global investors as it scales its robotaxi fleet and advances toward profitability. The company's growth trajectory comes at a time when many U.S. funds remain cautious on Chinese tech assets. Recent filings show ARK Invest, led by Cathie Wood, invested nearly $12.9 million in Pony.AI this month. It is the firm's first direct stake in a Chinese company focused exclusively on Level 4 autonomous driving. ARK wasn't alone in backing Pony.AI. Filings show that the robotaxi firm attracted at least 14 major global investors in the second quarter, including Baillie Gifford and Nikko Asset Management, which were noted for their big wins on Tesla TSLA, Tencent, Alibaba BABA, and Meituan MPNGY. Related: Pony AI's Robotaxi Expansion Accelerates Multi-Year Growth Trajectory, CEO Says In the second quarter, Pony.AI recorded a 158% year-over-year increase in robotaxi revenue, fueled by production of its seventh-generation fleet. CEO James Peng said the new models are 70% cheaper to build than earlier versions and deliver significantly lower operating costs. The company aims to operate 1,000 vehicles by the end of the year, a level it believes will secure unit-level profitability. Pony.AI has become the only operator with fully driverless commercial permits in all four of China's largest cities, Beijing, Shanghai, Guangzhou, and Shenzhen. Regulators recently allowed it to charge fares in parts of Shanghai's Pudong district. In a major boost to adoption, Pony.AI struck a partnership to integrate ride-hailing into Tencent's WeChat platform, which has over one billion active users. Analysts have noted Pony.AI's progress. Goldman Sachs issued a buy rating with a $24.50 forecast, projecting more than 50% upside from mid-August levels. UBS analysts estimate China's robotaxi market could reach $183 billion by the late 2030s, with international markets outside the U.S. adding nearly $400 billion. The investment reflects ARK's conviction that autonomous ride-hailing could be transformative. The firm projects the sector could become a $10 trillion global market by 2030. Wood's strategy spans multiple disruptive themes, as highlighted by her fund's recent decision to add more Amazon shares alongside its Pony.AI bet. Price Action: At last check Monday, PONY shares were trading lower by 1.39% at $15.64. Read Next: BYD Tops Global EV Charts With 30% Q2 Growth As Tesla Sales Sink 14% Worldwide Photo by Tada Images via Shutterstock PONYPony AI Inc$15.54-2.05%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentumN/AGrowthN/AQualityN/AValue7.77Price TrendShortMediumLongOverviewARKQARK Autonomous Technology & Robotics ETF$100.300.35%BABAAlibaba Group Holding Ltd$121.680.35%DRIVGlobal X Autonomous & Electric Vehicles ETF$25.72-%MPNGYMeituan$31.260.55%NIONIO Inc$4.840.73%TSLATesla Inc$333.981.03%XPEVXPeng Inc$19.750.23%Market News and Data brought to you by Benzinga APIs

Why Investors Slammed the Brakes on Pony AI Stock Today | The Motley Fool

In one important respect, the company only met expectations in its latest earnings release and business update. Expectations were clearly high for robotaxi developer Pony AI's (PONY -3.50%) second-quarter earnings, which were published before market open on Tuesday. The company's solid but not spectacular performance and production update ended up discouraging some investors. Collectively, they traded out of the stock to leave it with a nearly 4% dip in price that trading session. Reporting in both Chinese yuan and U.S. dollars, the China-based Pony AI revealed that its revenue leaped 76% year over year to just under $21.5 million. Much of that increase came from a more than tenfold rise in licensing and applications revenue. This came in at $10.4 million against slightly over $1 million in the same quarter of 2024. Going in the opposite direction was net loss, which widened on both a GAAP (generally accepted accounting principles) and non-GAAP (adjusted) basis. Under the latter standard, it was slightly over $46 million ($0.13) per share, comparing unfavorably to the year-ago deficit of $30 million. On average, analysts tracking Pony AI were modeling $16 million for revenue. Their consensus estimate for profitability wasn't immediately apparent. In terms of operations, Pony AI said that since the launch of mass production of robotaxis two months ago, more than 200 of Guangzhou Auto Group's and Beijing Automotive Industry Corporation's Gen-7 models -- packed with Pony AI technology -- have been produced. This puts the manufacturers on track to meet, although not exceed, its target of 1,000 by the end of this year.