Jefferies Says This 1 Robotaxi Stock Will Be a ‘Long-Term Winner’

Pony AI (PONY) is a pioneering autonomous driving expertise firm. Specializing within the improvement and large-scale commercialization of autonomous mobility, Pony AI integrates proprietary software program and {hardware} to supply robotaxi, robotruck, and autonomous car options throughout main cities globally. The corporate has secured permits for totally driverless public providers in Beijing, Guangzhou, Shanghai, and Shenzhen and has accomplished over 45 million kilometers of autonomous testing worldwide as of 2025.

Based in 2016, with headquarters in Silicon Valley, it has important operations in China.

Pony AI’s inventory has witnessed important volatility and development in 2025. Over the previous 5 days, the inventory declined about 10%, whereas the previous month noticed a strong acquire of 27%. For the six months, Pony AI surged greater than 300%, and its year-to-date (YTD) efficiency is up 48%, effectively forward of many sector friends and the broader market indices just like the MSCI World (URTH), which grew round 16% in the identical interval.

Patterns point out sturdy momentum rallies balanced by occasional steep pullbacks.

Pony AI reported sturdy Q2 2025 monetary outcomes on Aug. 12, delivering income of $21.5 million, exceeding analyst projections by almost 9% and marking a 76% surge year-over-year (YoY). Nevertheless, the corporate posted a web lack of $53.1 million, translating to an EPS of -$0.14, which missed consensus estimates by 3.8%.

Robotaxi service revenues soared 158% to $1.5 million, displaying fast adoption and expanded paid rider volumes, whereas licensing earnings jumped over 900%, driving the general outperformance.

Delving deeper, Q2 noticed gross margin flip optimistic at 16.1% from detrimental within the prior 12 months, benefitting from manufacturing scale and substantial price reductions in Gen-7 robotaxi {hardware}. Regardless of widening losses on account of aggressive R&D and fleet growth, Pony AI ended the interval with important money reserves of $747.7 million, supporting its ongoing funding and international ambitions. The corporate produced greater than 200 Gen-7 items and is concentrating on an operational fleet of 1,000 autos by year-end, partnering with trade leaders for worldwide deployment.

For the rest of 2025, Pony AI reiterated formidable steering: double-digit income and fleet development, accelerating international growth, and a deal with optimistic unit economics as the corporate advances towards its 2026 breakeven objective. Administration highlighted regulatory progress and partnerships in abroad markets, supporting its imaginative and prescient to seize a rising share of the $1.5 trillion robotaxi market.

Jefferies initiated protection of Pony AI with a “Purchase” ranking and set a worth goal of $32.80, reflecting an upside potential of 56% from the market price, reflecting sturdy confidence within the firm’s prospects because the robotaxi market evolves in China. The agency’s analysts, led by Johnson Wan, view China’s robotaxi sector as transferring from pilot initiatives to large-scale commercialization, with a complete addressable market projected to succeed in RMB52 billion ($7.4 billion) by 2030.

They cited Pony AI’s regulatory management, deal with price discount, and complete expertise stack, spanning OEMs, transport networks, and proprietary system innovation, as key differentiators.

In line with Jefferies, Pony AI is exceptionally positioned to capitalize on each community results and margin growth because the trade matures. The corporate is anticipated to seize a considerable 30% share of China’s home market over the long run. Notably, Pony AI stands aside as the one operator licensed to supply totally driverless, fare-based robotaxi providers throughout all 4 top-tier Chinese language cities, demonstrating a transparent regulatory and operational edge.

The analyst be aware additionally pointed to important partnerships with main trade gamers like Toyota (TM), BAIC, and GAC-Toyota for the co-development of the Gen-7 robotaxi and highlighted integrations with digital platforms equivalent to WeChat and Uber (UBER), enhancing consumer entry and development potential.

The robotaxi firm has been assigned a consensus “Robust Purchase” ranking by Wall Avenue, with a imply worth goal of $24.06, indicating an upside potential of 14% from the present market price. The inventory has been rated by eight analysts to this point, receiving seven “Robust Purchase” scores and one “Maintain” ranking.

On the date of publication, Ruchi Gupta didn’t have (both instantly or not directly) positions in any of the securities talked about on this article. All info and information on this article is solely for informational functions. This text was initially revealed on Barchart.com