Pony AI Expanding Robotaxi Fleet: What's the Path Forward?

Pony AI PONY, an autonomous-driving company based in Guangzhou, China, is accelerating its robotaxi ambitions. The company, which had around 250 robotaxis in its fleet late last year, aims to have in excess of 1,000 by the 2025-end.  Management stated on the first quarter of 2025 conference call that the large-scale deployment will ramp up gradually throughout the second half of the year. PONY is working closely with its partners to ensure a quick ramp-up.

To this end, PONY recently entered into a partnership with Xihu Group, Shenzhen’s leading taxi operator. Through this association, the company plans to deploy more than 1,000 Gen 7 robotaxis throughout the city. This move represents one of PONY’s boldest fleet scale-up efforts to date and signals its growing operational focus on tier-one urban centers in China. 

Crucially, the partnership adopts an asset-light and AI-empowered strategy. While Xihu Group handles vehicle operations and compliance, PONY concentrates on AI innovation and dispatch capabilities. As the first company approved for fully paid driverless services in Shenzhen’s city centers, PONY is uniquely positioned to push robotaxi adoption into the mainstream. With urban mobility demand rising, this 1,000+ vehicle push marks a defining step toward the large-scale commercialization of autonomous transportation.

Taking a Look at Other Similar Associations of PONY

Pony AI and the Japan-based Toyota Motor TM have a joint venture to mass-produce fully driverless robotaxis in China. The joint venture leverages GAC Toyota's production capabilities to mass-produce the autonomous vehicles. GAC Toyota refers to the joint venture between Toyota Motor Company and GAC Group (Guangzhou Automobile Group) to manufacture and sell Toyota vehicles in China.

In May, PONY partnered with Uber Technologies UBER to deploy its robotaxis onto the Uber platform. The partnership is expected to first launch in a key market in the Middle East later this year, with scope for further expansion. During the initial pilot phase, the robotaxis will have a safety operator onboard. PONY’s technology is a suitable choice for Uber's global platform as it is scalable and cost-effective.

PONY’s Price Performance & Earnings Estimate Revisions

Shares of PONY have plunged 17.9% year to date, underperforming the Zacks Transportation-Equipment and Leasing industry’s 1.8% increase in the same time frame.

The Zacks Consensus Estimate for PONY’s 2025 and 2026 losses has remained stable over the past seven days.

PONY's Zacks Rank

PONY currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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