Pony AI (NASDAQ: PONY) stock soared 11% during pre-market trading on Tuesday following remarks from its Chief Technology Officer that the Chinese robotaxi firm is approaching profitability after overcoming a major cost barrier. This development is seen as a crucial milestone in the path toward commercializing autonomous vehicles.
At the Shanghai Auto Show last week, Pony AI unveiled three new robotaxis developed in collaboration with Toyota (NYSE: TM), BAIC Motor, and Guangzhou Automobile Group. The company also revealed that it has successfully reduced the production cost of its most advanced self-driving system by 70%, a crucial development in its journey toward profitability.
According to comments made by Tiancheng to the Wall Street Journal, this substantial reduction in manufacturing costs positions Pony AI closer to achieving “single-unit breakeven” — the point at which each additional robotaxi delivered generates a profit.
Lou attributed this cost efficiency primarily to software optimization. He noted that the company has tripled its software performance while maintaining the same computing power.
In parallel developments, Pony AI has entered into a strategic partnership with Tencent Cloud and the Smart Industries Group (CSIG) to enhance its autonomous driving technology and expedite the commercialization of its Robotaxi services.
The collaboration, announced on April 25, focuses on integrating Pony.ai’s robotaxi services into Tencent’s Weixin Mobility Services platform and Tencent Maps, potentially expanding the service’s user base. Furthermore, the partnership seeks to foster innovation in operational models, product features, and in-car entertainment systems, aiming to improve the overall Robotaxi user experience.
Pony AI will also leverage Tencent’s expertise in cloud computing, big data, virtual simulation, and artificial intelligence (AI) to strengthen its proprietary PonyWorld virtual model. This model is designed to simulate real-world driving conditions with greater accuracy, enhancing the adaptability and decision-making of its autonomous vehicles in extreme scenarios.
As of the latest update, Pony AI (NASDAQ: PONY) stock is up 11.05%, trading at $11.46.
Kevin Putnam is a financial journalist and editor based in New York. He specializes in editing news and analysis related to U.S. stock market. Read Full Bio
