Pony AI nears profitability with reduced production costs for robotaxis- report

Published 28/04/2025, 12:00
© Reuters.

Investing.com -- Chinese robotaxi firm Pony AI is nearing profitability after overcoming a significant cost challenge, according to the company’s Chief Technology Officer. This development is believed to be a key step towards the commercialization of autonomous vehicles.

Last week, at the Shanghai Auto Show, Pony AI unveiled three new robotaxis, developed in partnership with Toyota (NYSE:TM), BAIC Motor, and Guangzhou Automobile Group. The company stated that it can now manufacture its most advanced self-driving system at a cost 70% lower than previously.

The reduction in costs brings Pony AI closer to achieving single-unit breakeven, a point at which the company makes a profit each time a new robotaxi is added to its fleet, Tiancheng told WSJ.

The key to this cost reduction, according to Lou, is software optimization. He stated that the company’s software performance has tripled while using the same computing power.

The ability to produce their product more cheaply is a critical step towards achieving the single-unit breakeven goal, a target that Chinese autonomous-driving companies have been competitively pursuing.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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