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Investing.com-- Chinese robotaxi firm Pony Ai Inc (NASDAQ:PONY) is on track to hit a major profitability target by end-2025 or early-2026, the Wall Street Journal reported on Friday, citing comments from CFO Leo Haojun Wang.
Wang told the WSJ that Pony was “well on track” to reach single-unit economic break-even and even clock a positive margin by the year-end or early next year. He attributed the progress to Pony AI’s efforts to build out its fleet, lower insurance costs and increase its user base.
Chinese robotaxi firms– which include WeRide and Baidu-backed Apollo Go– have been pushing to reach single-unit economic break-even, which implies that they book a profit every time they add a new car to their fleets.
The metric is a key factor in achieving overall profitability for the firms, especially in the wake of the billions of dollars invested in building and testing robotaxi technology.
Pony AI has finished producing 400 robotaxis and is slated to deploy 1,000 vehicles globally, Wang said.
China’s robotaxi market is the largest and most competitive in the world, with Pony AI and its rivals having far outpaced comparable companies in the United States. Google’s Waymo is currently the only major robotaxi operator in the country, while electric vehicle maker Tesla has limited operations in Texas.