Pony AI (PONY) Q2 Earnings Overview
Pony AI released earnings early this morning, and while the initial market reaction saw the stock dip about 5%, it quickly rebounded to previous levels.
This update will break down the company’s recent progress and outline why we’re maintaining our current sell target on the name.
Pony.ai has been one of the wildest rides we’ve taken in the market. After an explosive 35% surge right out of the gate, the stock whipsawed hard sliding below $10 before staging an equally aggressive rebound.
Fast forward to now, shares are up over 300% from the lows and hovering around the $14-$18 range pending what day of the week it is.
Uber Deal – A Catalyst, Not a Conviction Builder
The recently announced Uber partnership is a real catalyst that could fuel another leg higher, but it doesn’t change our overall stance.
Global Expansion
Pony.ai isn’t just winning in China it’s pushing globally. The company now holds fully driverless licenses in Shenzhen’s Nanshan District (2,000 sq km), Dubai, South Korea, and Luxembourg.
Strategic partnerships are accelerating this expansion:
Tencent’s WeChat and Maps ecosystems give Pony.ai access to 1.2B monthly active users.
Toyota and Uber open doors to global ride-hailing networks and operational efficiency.
BAIC and GAC provide domestic production support, slashing lead times and costs.
Our Playbook
We like Pony.ai for its strong unit economics and global growth runway.
Hold through 2026 to ride breakeven milestones and revenue acceleration.
Maintain diversified exposure to the robotaxi sector, which is poised to reshape transportation.
With momentum building, we’re staying long though ideally, we’d like a small pullback to add more. Our year-end price target remains $28.
This quarter marked a major inflection point in Pony AI’s journey toward full-scale Robotaxi deployment, cementing its position at the forefront of the industry. Just two months into mass production, Pony AI has already delivered over 200 Gen-7 vehicles, keeping it on track to meet the ambitious year-end goal of 1,000 units.
Robotaxi revenue more than doubled year-over-year, with fare-charging revenue surging over 300% a clear signal that demand is accelerating alongside production capacity.
Equally important, Pony AI is closing in on positive unit economics. Significant cost reductions in key areas such as remote assistance and vehicle insurance have strengthened margins, bringing the company closer to sustainable profitability.
Pony AI’s leadership in the Robotaxi space rests on two core pillars fully driverless capability and large-scale deployment both of which it has already achieved. With extensive real-world testing across diverse environments, Pony AI’s autonomous driving stack has proven its reliability and adaptability, powered by its proprietary PonyWorld simulation and AI platform.
Operational Highlights:
Pony AI began production of both GAC and BAIC Gen-7 models in June and July, respectively. With 200+ vehicles already on the road, the company is moving at pace toward its 1,000-vehicle target by year-end 2025.
Pony AI has launched operations in all four of China’s tier-one cities, collectively logging over 2 million kilometers of autonomous driving. This real-world performance underscores its ability to operate safely in complex traffic conditions.
Remote assistant-to-vehicle ratios are improving, with a target of 1:30 by year-end 2025, allowing one remote operator to oversee 30 vehicles. Lower insurance costs are further enhancing operating efficiency.
Technological Edge:
Pony AI is one of the few global Robotaxi operators running fully driverless services at scale.
At WAIC 2025 in Shanghai, Pony AI was the only operator providing fully driverless, on-demand ride-hailing services to the public—and the only one to remain operational during extreme weather, from typhoons to heavy rainstorms.
With mass production ramping, global operations expanding, and cost structures improving, Pony AI is not just meeting its 2025 goals it is building the foundation for long-term, scalable growth in one of the most transformative industries of the decade.
Q2 2025 Highlights
Total revenues reached US$21.5 million (RMB 153.7 million) in the second quarter of 2025, marking a substantial increase of 75.9% compared to US$12.2 million in the same period of 2024. This growth was primarily driven by strong performance in both Robotaxi services and Licensing and Applications revenues.
Robotaxi services generated US$1.5 million (RMB 10.9 million) during the quarter, representing a remarkable 157.8% increase from US$0.6 million in Q2 2024. Both fare-charging and project-based engineering solution services experienced rapid growth, with fare-charging revenues soaring over 300% year-over-year. This robust expansion was fueled by increased user adoption, heightened demand in tier-one cities, and a larger fleet of deployed Robotaxi vehicles.
Additionally, ongoing optimization of pricing and operational strategies across diverse user segments enhanced user engagement and service efficiency.
Robotruck services revenue totaled US$9.5 million (RMB 68.2 million), reflecting a 9.9% decline from US$10.6 million in the second quarter of 2024. This decrease was primarily the result of proactive operational adjustments aimed at focusing on higher-margin revenue streams.
Licensing and applications revenues surged to US$10.4 million (RMB 74.6 million), an extraordinary 901.8% increase from US$1.0 million in the second quarter of 2024. This significant growth was driven by increased orders and deliveries of autonomous domain controller (ADC) products, supported by rising demand from both new and existing customers within the robot-delivery sector.
These achievements are supported by Pony AI’s rapid scaling and operational breakthroughs across all four tier-one cities in China, alongside an expanded presence in Dubai, South Korea, and Luxembourg.
As Pony AI enters the second half of this pivotal year of mass production, the company is strongly driving toward positive unit economics and accelerating its multi-year growth trajectory.
Expanding Global Presence by Entering New Markets and Deepening Existing Footprint
Strategic collaboration with local partners: Pony AI has established a strategic partnership with Dubai’s Roads and Transport Authority (RTA) to integrate its autonomous driving technology into the city’s future transportation ecosystem. This collaboration will see Pony AI’s technology deployed through a multi-phase rollout, starting with supervised Robotaxi trials in late 2025.
Advancing operations to cover diverse environments: Pony AI has expanded its footprint in South Korea by securing nationwide permits, enabling Robotaxi operations throughout the country. In Seoul’s Gangnam district, Pony AI is navigating complex urban traffic and challenging conditions, including winter snowfall. In Q2, Pony AI also launched nighttime and early-morning operations.
Ongoing positive regulatory and testing progress: Following the testing permit granted earlier this year in Luxembourg, Pony AI commenced road testing in Lenningen during Q2 in partnership with Emile Weber, Luxembourg’s leading mobility and fleet service provider.
UBS Initiates Coverage On Pony AI with Buy Rating, Announces Price Target of $20
Deutsche Bank Initiates Coverage On Pony AI with Buy Rating, Announces Price Target of $20
B of A Securities Initiates Coverage On Pony AI with Buy Rating, Announces Price Target of $18
Goldman Sachs Initiates Coverage On Pony AI with Buy Rating, Announces Price Target of $19.6
