Pony AI expands driverless taxi service in Shenzhen

Published 27/03/2025, 21:38
Pony AI expands driverless taxi service in Shenzhen

SHENZHEN, China - Pony AI Inc. (NASDAQ:PONY), an autonomous vehicle company currently trading at $10.16, has been granted a license to operate a fully driverless commercial Robotaxi service in Shenzhen’s Nanshan District. The company’s stock has experienced significant volatility, declining 23% year-to-date, and according to InvestingPro analysis, is currently trading near its 52-week low. This development comes after the company’s successful deployment of its paid robotaxi services in the Bao’an District.

The Nanshan District, known for its high-tech infrastructure and a GDP nearing RMB1 trillion as of 2024, presents a significant market for Pony.ai, which currently maintains a market capitalization of $3.85 billion. The district surpasses many global cities in scale, including San Francisco, with a population of nearly 2 million over 200 square kilometers. Pony.ai’s service in Nanshan will include landmark locations such as China Resources Tower and Shenzhen Bay Park, aiming to provide innovative transportation solutions to residents and visitors. InvestingPro data reveals the company holds more cash than debt on its balance sheet, with a strong current ratio of 11.77.

Dr. James Peng, co-founder and CEO of Pony.ai, stated that the expansion into Nanshan will likely boost public adoption and trust in driverless technology. The company’s technology will be further tested in Shenzhen’s complex urban environment, which could validate its readiness for large-scale deployment.

Since receiving Shenzhen’s first city-level driverless pilot license in August 2023, Pony.ai has extended its network to connect the city’s main economic and transportation hubs. Users can book rides across these areas via the PonyPilot App or WeChat Mini Program.

Pony.ai has accumulated approximately 45 million kilometers of autonomous driving mileage, including about 5 million driverless kilometers. The company reports strong user feedback, with average daily orders per vehicle reaching approximately 15 in 2024.

This announcement is based on a press release statement. Pony.ai, founded in 2016, has expanded globally and is focused on scaling its robotaxi operations to guide the industry into the next phase of development. With revenue of $75 million in the last twelve months and 4.35% revenue growth, investors await the company’s next earnings report scheduled for March 27, 2025. The company’s forward-looking statements involve risks and uncertainties, and further details can be found in its SEC filings. For comprehensive financial analysis and additional insights, including 12 more exclusive ProTips, visit InvestingPro.

In other recent news, Pony AI Inc. reported a 30% year-over-year decline in revenue for the fourth quarter of 2024, totaling $35.5 million, with a drop in gross profit margin due to increased sales from its Robotruck business. Despite these challenges, BofA Securities maintained a Buy rating on the company’s stock, albeit with a reduced price target of $17.70. In contrast, the company announced a 4.3% increase in total revenue for the full year of 2024, reaching $75.0 million, driven by its expanding robotaxi services in China. Pony AI plans to bolster its robotaxi offerings with the introduction of new Generation 7 models, supported by partnerships with GAC Aion, BAIC BJEV, and Toyota. The company also received approval to conduct platooning tests for its robotrucks on cross-provincial highways in China, marking a significant step in its autonomous trucking strategy. Pony AI’s R&D expenses rose significantly, with a focus on developing its 7th-generation vehicle in collaboration with OEM partners. The company’s financial position remains strong, with $825.1 million in cash and investments at the end of 2024. Pony AI continues to advance its Virtual Driver technology, achieving improvements in safety and reductions in insurance costs. These developments highlight Pony AI’s ongoing efforts to commercialize autonomous mobility solutions.

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