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On Wednesday, Goldman Sachs analyst Allen Chang increased the price target on Pony AI Inc (NASDAQ:PONY) shares to $26.00, up from $23.10, while reiterating a Buy rating for the company. The stock, currently trading at $17.88, has shown strong momentum with a 49% gain over the past six months, though InvestingPro analysis suggests the shares are trading above their Fair Value. The adjustment follows Pony AI’s recent financial disclosures, which showed the company’s first-quarter revenues for 2025 at $14 million, marking a 12% year-over-year increase, despite a 61% decline from the previous quarter.
Pony AI reported an operating loss of $56 million, which, while significant, is an improvement from the $173 million loss recorded in the fourth quarter of 2024. The company’s robotaxi operations have been expanding, with fare-charging revenues skyrocketing by 800% year-over-year. This growth aligns with expectations for recurring revenues to play a larger role in stabilizing performance across different quarters. According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 15.86, and holds more cash than debt on its balance sheet. Subscribers can access 12 additional ProTips and comprehensive financial metrics to better evaluate the company’s potential.
The company is also progressing with its Gen7 robotaxi, which has entered mass production. Management has set a target to gradually roll out the new model, aiming to have a total of 1,000 robotaxis in operation by the end of the year. The Gen7 robotaxi is noted for its enhanced cost efficiency compared to the previous Gen6 model, and the growing fleet size is expected to broaden service coverage and attract more users.
Goldman Sachs’ continued endorsement of Pony AI is based on the company’s expanding scale in the robotaxi sector and its transition from project-based initiatives to operations business. There is also a long-term strategy in place to focus on recurring software solutions. The firm’s positive outlook is supported by these developments, which are anticipated to drive the company’s growth in the near future. With a market capitalization of $6.35 billion and an overall Financial Health score of "FAIR" from InvestingPro, investors should note that analysts maintain a strong buy consensus with price targets ranging from $20 to $26.
In other recent news, Pony AI Inc. has made significant strides in its operations and partnerships. The company is nearing profitability after reducing production costs for its robotaxis, a development highlighted by Chief Technology Officer Lou Tiancheng. Analysts from Nomura have noted a substantial decrease in the bill-of-materials costs, now approximately $41,165 per unit, down from $137,217. This cost reduction is attributed to software optimization, which has tripled performance while maintaining the same computing power. Furthermore, Pony AI has announced a strategic partnership with Tencent (HK:0700) Cloud to enhance its autonomous driving technology and expand its Robotaxi services. The collaboration aims to integrate Pony.ai’s offerings into Tencent’s Weixin Mobility Services platform and Tencent Maps, potentially increasing its customer base. In another development, the company’s co-founders have extended their share lock-up period by 540 days, indicating confidence in the company’s growth strategy. Lastly, Pony AI unveiled its seventh-generation robotaxi lineup at the Shanghai International Automobile Industry Exhibition, developed in collaboration with Toyota (NYSE:TM), BAIC, and GAC. These advancements are part of Pony AI’s ongoing efforts to scale up Robotaxi production and deployment globally.
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