Key Stats for Pony AI Stock
- 1-day Price Change for Pony AI stock: 7%
- Current Share Price: $22.72
- 52-Week High: $23.88
- $PONY Stock Price Target: $22.53
What Happened?
Pony AI (PONY) stock jumped more than 7% on Monday after Citigroup initiated coverage with a “buy” rating and a $29 price target. That PONY stock price target sits 28% above where the stock traded after Monday’s rally.
Citi analyst Jeff Chung is betting big on the robotaxi market in China, where Pony AI operates. He thinks robotaxi penetration will surge from just 0.1% this year to 9% by 2030, then rocket to 30% by 2035.
The timing of the analyst upgrade coincides with Pony AI achieving several major operational milestones. The company has just reported second-quarter earnings, growing revenue by 76% year over year, with robotaxi service revenue more than doubling.
Fare-charging revenue, the part of the business that shows real commercial traction, grew over 300%. While Pony AI stock is currently unprofitable, it is forecast to end 2029 with a free cash flow of $214 million.
Pony AI produced over 200 of its seventh-generation robotaxis in the last two months and is on track to hit 1,000 vehicles by year-end.
These Gen-7 vehicles cost 70% less to build than the previous generation, a massive improvement in unit economics. The company has also reduced insurance costs by 18% and improved its remote monitoring efficiency, allowing one operator to now handle 30 vehicles.
Goldman Sachs also recently raised its price target on Pony AI stock to $27.70 from $24.50, citing the company’s expanded 24/7 service in Guangzhou and Shenzhen, as well as the launch of a fully driverless commercial service in Shanghai’s Pudong district.
Pony AI is now the only company with fully driverless commercial permits in all four of China’s tier-one cities: Beijing, Shanghai, Guangzhou, and Shenzhen.
The company’s Gen-7 vehicles have already driven over two million kilometers in real-world conditions, including tropical storms, extreme heat, and cold weather. The safety record remains perfect, which is crucial for securing regulatory approvals and establishing consumer trust.
See analysts’ growth forecasts and price targets for Pony AI stock (It’s free!) >>>
What the Market Is Telling Us About Pony AI Stock
Pony AI stock getting favorable coverage from both Citi and Goldman Sachs signals growing institutional confidence in the autonomous vehicle sector, particularly in China.
The company’s registered user base increased by 136% year over year in the second quarter, demonstrating strong consumer adoption. User satisfaction remains above 4.8 out of 5, which is significant because happy riders become repeat customers and effective word-of-mouth marketers.
Pony AI isn’t just burning cash to chase growth; it is methodically improving unit economics across every cost line, including vehicle production, insurance, maintenance, remote monitoring, and energy. CEO James Peng said the path to positive unit economics is now “very clear.”
Moreover, Pony AI is targeting markets with strong mobility demand, developed infrastructure, and supportive regulations. It has established a presence in seven countries and recently started operations in Dubai, Seoul, and Luxembourg.
However, Pony AI lost $53 million in the second quarter, up from $31 million a year earlier, primarily due to investments in mass production.
Cash reserves sit at $748 million, which should support operations but won’t last forever without additional capital infusion or a path to profitability.
Competition continues to intensify, as evidenced by WeRide, another Chinese robotaxi operator, receiving a buy rating from the same Citi analyst. Tesla is pushing hard into full self-driving. And dozens of startups globally are chasing the same opportunity.
Pony AI stock offers exposure to what could be the winning player in the world’s largest auto market. The company has technology that works, regulatory approvals that matter, and a scaling strategy that’s actually executing.
If the analyst projections are correct and robotaxis capture 9% of China’s ride market by 2030, early leaders like Pony AI could see explosive revenue growth.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
