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SHANGHAI - Pony AI Inc. (NASDAQ:PONY), a company specializing in autonomous mobility with a market capitalization of $1.45 billion, has introduced its latest autonomous driving system at the Shanghai International Automobile Industry Exhibition. The company, which generated revenue of $75 million in the last twelve months, has introduced its latest autonomous driving system at the Shanghai International Automobile Industry Exhibition. The new seventh-generation system is designed to enhance passenger safety and stability while significantly reducing costs.
The company’s latest autonomous driving kit (ADK) is touted as fully automotive-grade, aiming to extend product lifecycle and improve reliability. According to Pony AI, the system has achieved a 70% reduction in bill-of-materials (BOM) costs, including an 80% decrease in autonomous driving computation (ADC) costs and a 68% cut in solid-state LiDAR costs, compared to the previous generation. InvestingPro data shows the stock has recently entered oversold territory, with shares trading near their 52-week low of $4.11.
With a modest gross profit margin of 15.2% and analysts not expecting profitability this year, Pony AI’s Co-founder and CEO, Dr. James Peng, stated that 2025 is a pivotal year for the company’s mass-produced Robotaxis, highlighting the importance of technology readiness, product integration, and operational capabilities. InvestingPro subscribers have access to 12 additional investment tips and comprehensive financial analysis for PONY. The company believes that its strategic focus on these areas has positioned it to deploy Robotaxis safely and reliably.
The Chief Technology Officer, Dr. Tiancheng Lou, emphasized the company’s commitment to safety, noting that the requirements for Level 4 (L4) autonomous systems exceed those of human drivers. Pony AI’s proprietary simulation platform, PonyWorld, is used to generate realistic scenarios and establish benchmarks for autonomous decision-making that surpass human capabilities.
The exhibition also marked the debut of three new Robotaxi models developed in partnership with Toyota, BAIC, and GAC. The Toyota bZ4X Robotaxi, featuring Pony AI’s seventh-generation system, is the first production model unveiled. The lineup is completed with the ARCFOX Alpha T5 and the second-generation Aion V Robotaxi models.
Founded in 2016, Pony AI has expanded its operations globally and is dedicated to the large-scale commercialization of autonomous vehicles across various transportation sectors. The company maintains a strong liquidity position with a current ratio of 11.77, indicating robust short-term financial stability.
This announcement is based on a press release statement from Pony AI Inc. and contains forward-looking statements that involve risks and uncertainties. Pony AI has provided no obligation to update any forward-looking statement as of the date of the press release.
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. This decrease was mainly due to the timing of project-based revenue recognition. The company also experienced a drop in gross profit margin to 21.1%, a 12.9 percentage point decrease from the previous year, partly due to increased sales from its Robotruck business. Additionally, Pony AI’s research and development expenses soared to $148 million, or 416% of sales, driven by stock-based compensation and investment in its 7th-generation vehicle development. BofA Securities responded by lowering the stock price target to $17.70 from $18.00 but maintained a Buy rating, indicating ongoing confidence in the company.
Pony AI has also expanded its fully driverless commercial robotaxi services in Shenzhen’s Nansha District. The service will operate in key locations like China Resources Tower and Shenzhen Bay Park, aiming to boost public adoption of driverless technology. In Europe, Pony AI secured a permit for Level 4 autonomous vehicle testing in Luxembourg, marking a significant step in its European expansion. The company partnered with Emile Weber, a local mobility solutions provider, to enhance mobility services in the region. These developments highlight Pony AI’s strategic efforts to advance its autonomous driving technology across different markets.
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