Chinese autonomous driving company Pony AI (PONY) stumbled on its Hong Kong listing debut, with the stock plunging 12% yesterday. Notably, Pony AI stock also fell almost 9% on the Nasdaq after it raised $860 million via its initial public offering on the Hong Kong Stock Exchange. PONY stock is down about 8% today as well.
While Pony AI continues to gain traction in the autonomous driving segment, it remains unprofitable, reporting a net loss of $53.3 million in Q2 2025. Notably, the company is investing heavily in scaling Level 4 autonomous driving technology, which requires no human intervention.
The dual listing may be a strategic hedge against mounting regulatory headwinds in the United States. For instance, back at the start of the year, the U.S. government finalized rules that ban the use of Chinese technology in connected vehicles, including self-driving systems.
While Pony AI has partnered with Uber (UBER) to deploy robotaxis on its ride-hailing platform pending regulatory approval, its U.S. expansion plans remain uncertain. Alternatively, the Hong Kong listings provide access to Asian capital markets and support expansion in China and the Middle East.
Is Pony AI Stock a Good Buy Right Now?
Valued at a market cap of $6.4 billion, PONY stock is down over 45% from all-time highs. And the ongoing pullback has left shareholders down 6% in the past year.
That said, Pony AI delivered impressive second-quarter results with total revenue surging 76% year-over-year (YoY) to $21.5 million as it ramps up mass production of its seventh-generation robotaxi fleet. The Guangzhou-headquartered firm produced over 200 Gen-7 vehicles in just two months and remains firmly on track to hit its target of more than 1,000 vehicles by year-end 2025, a pivotal inflection point in scaling commercial operations.
Robotaxi service revenue jumped 158% to $1.5 million, with fare-charging revenues surging over 300%, driven by expanding user adoption across China's four Tier 1 cities and an increased deployed fleet.
Registered users increased by 136% YoY while maintaining customer satisfaction ratings above 4.8 out of 5. Pony AI also expanded to full 24/7 coverage in Guangzhou and Shenzhen and secured Shanghai's first fully driverless commercial license, making it the only operator with commercial fully driverless operations across all four Tier 1 cities.
The Gen-7 platform is cost-effective as the bill-of-materials expenses dropped 70% compared to the previous generation. Moreover, the management achieved an 18% reduction in vehicle insurance costs and improved the remote assistance-to-vehicle ratio with confidence in reaching one operator monitoring 30 vehicles by year-end.
The vehicles completed over 2 million kilometers of autonomous driving across diverse conditions, including tropical storms and extreme temperatures, with an impeccable safety record.
Despite strong operational momentum, net losses widened to $53.3 million from $30.9 million in the prior-year period as the company invested aggressively in mass production infrastructure and research and development. Non-GAAP net loss reached $46.1 million compared to $30.3 million last year, while Pony AI ended the quarter with $747.7 million in combined cash, equivalents, and investments.
International expansion progressed with strategic collaborations in Dubai, Seoul, and Luxembourg. Pony formed a partnership with Dubai's Roads and Transport Authority for trials beginning in late 2025 and secured nationwide permits in South Korea with extensive operations in Seoul's Gangnam District.
Management emphasized that scaling hundreds of commercial, fully driverless robotaxis requires strong local policy support, which currently exists primarily in the United States and China, suggesting that international revenue generation remains several years away.
What Is the PONY Stock Price Target?
Analysts tracking PONY stock forecast revenue to increase from $75 million in 2024 to $1.03 billion in 2029. The company is also expected to report a free cash flow of $214 million in 2029, compared to a $282 million outflow this year.
Out of the eight analysts covering PONY stock, seven recommend “Strong Buy,” and one recommends “Hold.” The average stock price target for Pony AI is $26.62, almost double the current price of $13.60.
On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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