Why Pony AI Inc. (PONY) Went Down On Tuesday

We recently published a list of Why These 10 Companies Were Heavily Sold Down. In this article, we are going to take a look at where Pony AI Inc. (NASDAQ:PONY) stands against other companies that were heavily sold down.

Wall Street’s main indices finished stronger on Tuesday, buoyed by the influx of more corporate earnings results.

The Dow Jones grew by 0.75 percent, the S&P 500 rose by 0.58 percent, and the Nasdaq was up by 0.55 percent.

Despite the wider market optimism, 10 companies managed to register declines, predominantly due to investors exercising caution coupled with companies’ dismal earnings performance during the past quarter.

In this article, we have identified Tuesday’s 10 worst-performing stocks and detailed the reasons behind their drop.

To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5-million trading volume.

Pony AI Inc. (NASDAQ:PONY)

Pony AI dropped its share prices by 6.49 percent to end at $9.65 apiece as investors resorted to profit-taking following Monday’s surge, supported by news that it was entering the robotaxi industry and nearing profitability.

According to reports quoting PONY’s chief technology officer, Lou Tiancheng, the company was already nearing profitability after clearing significant challenges on the costs of materials.

In a report by the Wall Street Journal, Tiancheng said that Pony AI Inc. (NASDAQ:PONY) can now build its autonomous driving system for 70 percent less.

PONY is an autonomous driving technology company that supports carmakers in making vehicles to become autonomous.

However, the company announced last week that it will start to develop an autonomous driving technology and offer robotaxi services soon.

In an interview with CNBC on Friday, Pony AI Inc. (NASDAQ:PONY) CEO James Peng said that the firm is in talks with Tencent Cloud to offer robotaxi services on the latter’s WeChat and other applications.

Peng said both firms will benefit from the latter’s huge user base and cloud offerings.

Overall, PONY ranks 6th on our list of companies that were heavily sold down. While we acknowledge the potential of PONY as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PONY but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.