Analysts See Long-Term Robotaxi Upside for Pony AI (PONY) Despite Near-Term Risks

Pony AI Inc. (NASDAQ:PONY) is one of the AI Stocks in the Spotlight for Investors. On December 16, Barclays analyst Jiong Shao initiated coverage of the stock with an Equal Weight rating and $15 price target.

According to the firm, robotaxi technologies are mostly ready in China and there is a viable business model for them. While challenges facing the industry cannot be overlooked, the future potential of PONY AI lies in robo, not in taxi.

A day earlier, Macquarie initiated coverage on the stock with an Outperform rating and set a price target of $29. The firm believes 2026 is a turning point for robotaxi profits.

Firm analyst sees Pony AI at the forefront of robotaxi commercialization in China. It believes that 2026 is the starting point for the robotaxi push, with fleet size set to triple as well as witness a 20% decline in hardware costs that will push forward toward profitable operations.

"Our benchmarking suggests robotaxis could reach 45% of the China mobility market share by 2035E. Our base case is Pony remains a top-two China robotaxi player, which implies a $12.6B equity value.” - Analyst Eugene Hsiao

Pony AI Inc. (NASDAQ:PONY) specializes in autonomous mobility, offering AI-driven robotruck and robotaxi services, intelligent driving software, and vehicle integration solutions.

While we acknowledge the potential of PONY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.