While you may never have heard of Pony AI (PONY), this autonomous vehicle company is taking on some of the biggest names around, and managing to succeed. In fact, Pony AI is managing to do a number on no less than Tesla (TSLA) itself. Pony is ramping up its plans to build robotaxis, and investors are responding. Shares are up modestly in Wednesday afternoon’s trading.
Pony AI looks to have over 1,000 robotaxi units launched this year, with plans to get more than 10 times that figure on the road by 2028. Currently, its stock is somewhat modest; it has a little over 300 robotaxis in play right now, mostly in the biggest Tier 1 Chinese cities: Beijing, Guangzhou, Shanghai and Shenzhen.
Moreover, Pony AI looks to be profitable fairly soon as well; it hopes to start turning a profit by 2029. While commercializing robotaxis has already begun, the question now—according to CEO James Peng—is how to ramp up that launch into a more profitable position. Reducing costs is also a factor; as Pony AI starts looking to mass market releases of its autonomous vehicles, it has figured that it can produce each unit—including batteries, sensors, and assorted other parts—for about $40,000 per unit. Pricey, but not bad when compared with, say, a new pickup.
More Than Just Taxis
As several ride-hailing services have discovered over the years, throwing in delivery operations can be a profitable side-hustle. And Pony AI is no different here, as recently, it staged tests for “autonomous truck platoons.” It recently staged tests of such a platoon on the roads connecting Beijing, Tianjin, and Hebei Province.
The latest tests are just part of Pony AI’s operations, as Pony AI has already run an impressive amount of testing on its product line. Current testing mileage is somewhere around 45,000 kilometers, reports note, as around 500 TEUs—shipping container units—of freight have been moved. It sounds like Pony AI may be close to a serious breakthrough in autonomous vehicles, a point that many have tried to match.
Is PONY a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on PONY stock based on three Buys assigned in the past three months, as indicated by the graphic below. After a 5.38% rally in its share price over the past year, the average PONY price target of $19.20 per share implies 41.12% upside potential.
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