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GUANGZHOU - Pony.ai, currently valued at $4.6 billion and holding more cash than debt on its balance sheet according to InvestingPro, announced Tuesday that its Level 4 automotive-grade autonomous driving domain controller has surpassed 2 million kilometers of on-road testing in its seventh-generation Robotaxi fleet.
The controller, which was unveiled at the Shanghai Auto Show in April, is built entirely with automotive-grade components and designed for a lifecycle of 10 years or 600,000 kilometers. According to the company, the system’s cost has been reduced by 80% compared to the previous generation - a crucial development as the company works to improve its 14.5% gross profit margin.
Developed in-house, the domain controller utilizes three NVIDIA OrinX chips in the main unit with a fourth chip dedicated to system redundancy, delivering 1,016 TOPS of computing power. The company claims the controller achieves a 50% to 80% reduction in size, weight, power consumption, and cost compared to previous versions.
The system functions as the central computing hub, integrating various sensors and controllers required for Robotaxi operation, including power management, interactive display, and hazard warning lights. It also incorporates a multi-layered safety architecture with "Fail Operational" capability, allowing the vehicle to safely pull over in the event of a system failure.
Pony.ai stated that its seventh-generation Robotaxis are now in mass production and undergoing road testing. With revenue of $76.5 million in the last twelve months and analysts projecting growth ahead, the company plans to deploy a fleet of 1,000 autonomous vehicles in 2025. For detailed financial analysis and additional insights, including 8 more exclusive ProTips, visit InvestingPro.
The announcement was made in a press release statement from the autonomous driving technology company, which currently trades with high price volatility and maintains a strong liquidity position with a current ratio of 15.86.
In other recent news, Pony AI has reported notable financial developments, with first-quarter revenues for 2025 reaching $14 million, a 12% increase year-over-year. Despite this growth, the company faced an operating loss of $56 million, although this represents an improvement from the $173 million loss in the previous quarter. Goldman Sachs responded to these financial disclosures by raising its price target for Pony AI to $26, maintaining a Buy rating. Additionally, BofA Securities reiterated a Buy rating with a $21 price target, highlighting significant cost reductions in Pony AI’s latest robotaxi model, including a 70% reduction in production costs.
Pony AI’s expansion efforts are further evidenced by a Memorandum of Understanding with Dubai’s Roads and Transport Authority to deploy its robotaxi fleet in the region. The company’s founders have also extended their share lock-up period, covering significant ordinary shares, reflecting their confidence in Pony AI’s growth strategy. In partnership with major automotive companies, Pony AI unveiled new robotaxis at the Shanghai Auto Show, achieving a 70% reduction in manufacturing costs for its self-driving systems. These developments indicate a positive trajectory for Pony AI as it nears profitability and continues to scale its robotaxi operations.
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