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LUXEMBOURG - Pony AI Inc. (NASDAQ:PONY), an autonomous vehicle technology firm with a market capitalization of $2.6 billion, has been granted a permit to conduct Level 4 Robotaxi testing in Luxembourg, marking a significant step in its European expansion. The company, which has existing testing permits in China, the United States, and South Korea, is the first autonomous vehicle company to establish a dedicated research and testing hub in Luxembourg. According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 11.77, suggesting robust operational flexibility for its expansion plans.
The testing initiative is a collaboration with Emile Weber, Luxembourg’s premier mobility solutions provider, combining Pony AI’s autonomous technology with Emile Weber’s expertise in public and private transit, taxis, vehicle rentals, and tourism operations.
Dr. James Peng, Co-founder and CEO of Pony AI, expressed gratitude for the permit and highlighted Luxembourg’s central location, regulatory framework, and commitment to mobility innovation as key factors for choosing the country as its European operations base. The partnership with Emile Weber is expected to provide valuable local insights for adapting the technology to European conditions.
Luxembourg’s Minister for Mobility and Public Works, Yuriko Backes, acknowledged the testing permit as an important step for the future of mobility and expressed the government’s support for innovations that enhance safety and efficiency in transportation.
Pony AI has been strategically growing its European presence since 2024, with a Memorandum of Understanding signed with Luxembourg’s government in March to explore autonomous mobility solutions. The establishment of its European division in September laid the groundwork for the company’s R&D and testing activities in the region.
Pony AI, founded in 2016, aims to commercialize autonomous mobility on a large scale through its vehicle-agnostic Virtual Driver technology, which integrates proprietary software, hardware, and services. While the company reported revenue of $75 million in the last twelve months with 4.35% growth, analysts tracked by InvestingPro do not anticipate profitability this year, with forecasted EPS of -$0.55 for 2025. The company’s expansion across China, Europe, East Asia, the Middle East, and other regions has been geared towards ensuring broad accessibility to its advanced technology.
This news is based on a press release statement from Pony AI Inc. and does not include any speculative or promotional content.
In other recent news, Pony AI Inc. reported a 4.3% increase in total revenue for 2024, reaching $75 million. Despite a 30% year-over-year decline in fourth-quarter revenue to $35.5 million, attributed to project-based revenue timing, the company is optimistic about future growth. Pony AI plans to deploy its Generation 7 robotaxi models in collaboration with partners like Toyota, GAC, and BAIC. The company has expanded its driverless taxi service in Shenzhen’s Nanshan District, a significant market with a population nearing 2 million. This expansion is part of Pony AI’s broader strategy to commercialize autonomous driving technology in China’s tier-1 cities.
In terms of financial performance, Pony AI’s non-GAAP R&D expenses rose by 14% compared to 2023, driven by stock-based compensation expenses and increased investment in developing new vehicle models. Pony AI’s financial position remains strong, with cash and cash equivalents totaling $825.1 million at the end of 2024. BofA Securities recently adjusted its price target for Pony AI to $17.70, maintaining a Buy rating despite the financial challenges. The company’s continued focus on innovation and strategic partnerships highlights its commitment to leading the autonomous vehicle industry.
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