The U.S. arm of Chinese self-driving car company Pony AI PONY is reportedly being eyed by Uber Technologies UBER in a major development in the autonomous vehicle landscape, which is already very much in focus. The talks between Pony AI and UBER are in a preliminary stage. The financial terms of the potential transaction are undisclosed. We remind investors that China’s robotaxi company made its Nasdaq debut in November 2024.
Pony AI, which already has an impressive fleet of robotaxis, is expanding its fleet, with around 250 robotaxis late last year. The Chinese company aims to have in excess of 1,000 by 2025. PONY already partners with 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.
Coming back to the acquisition news, Uber’s former CEO Travis Kalanick is reportedly in talks with the San Francisco-based ride-hailing giant to help fund his plan to buy PONY’s U.S. arm. In the event of Uber’s acquisition of PONY’s U.S. unit materializing, the former will gain a stronger foothold in the AV space, where competition is heating up with every passing day.
Let’s Have a Look at Some Other Key Players in the Space
Alphabet’s GOOGL Waymo is a force to reckon with in this evolving and lucrative space. Alphabet, through its Waymo arm, already has commercial operations in several cities across the United States, like San Francisco, Phoenix, Austin and Los Angeles. Adding to the list, earlier this month, Waymo partnered with Uber to launch an autonomous ride-hailing service in Atlanta.
Tesla TSLA, the world’s most valuable Electric Vehicle or EV company, launched its robotaxi service recently in Austin, TX. TSLA is building its AV technology in-house, betting big on its proprietary Full Self-Driving or FSD technology. Tesla’s independence in AV development allows it to maintain full control over the technology.
Taking a Look at Uber & PONY's Price Performance and Earnings Estimate
Shares of UBER have gained 51.8% so far this year, outperforming PONY's 4.8% decline in the same timeframe.
YTD Price Comparison
Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for UBER’s 2025 and 2026 EPS has moved up in the past 30 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for PONY’s 2025 and 2026 losses has remained stable over the past 30 days.
Image Source: Zacks Investment ResearchZacks Rank
Currently, UBER carries a Zacks Rank #3 (Hold) and PONY 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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Tesla, Inc. (TSLA): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report Uber Technologies, Inc. (UBER): Free Stock Analysis Report Pony AI Inc. - Sponsored ADR (PONY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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