Pony AI Stock Trades Well Above IPO Price Ahead Of Earnings, But Retail Fears Reversal Of Fortunes

Pony AI Inc.'s stock price has risen by more than 30% after its November 2024 IPO, when each depository share was priced at $13.

However, investors have voiced concerns over the company's ability to sustain its growth momentum as it prepares to report its first full-quarter earnings since going public on Tuesday.

Pony AI shares closed down 8.25% at $16.91 on Monday but recovered 2.13% in after-hours trading to $17.27.

Despite recording a $274 million loss in 2024, Pony AI must scale robotaxi production to achieve profitability by 2026, according to a Bloomberg report.

Regulatory risks from autonomous vehicle incidents in China, combined with intensified competition and slower technology adoption, prevent the company from reaching profitability.

The China-based company boosted its market position through strategic partnerships with major automakers like Toyota, which helped it launch new Robotaxi models at the Shanghai Auto Show.

Pony AI's accelerated growth in its competitive market segment stems from joint development projects with multiple businesses specializing in autonomous driving technology.

The company also improved its cost efficiency and operational expansion through strategic partnerships.

Pony AI managed to reduce production expenses by 70% for its autonomous driving systems through cost reduction measures, which allowed every new robotaxi added to the fleet to become profitable at breakeven.

It will begin mass production of its robotaxis in mid-2025 and targets expanding its vehicle fleet from 300 to more than 1,000 by the end of the year.

On Stocktwits, retail sentiment was ‘bearish’ amid ‘low’ message volume.

“I was up so much money on Friday and now lost it all. Going back in on safer easy money at WeRide. At least that one went up all day today,” said one skeptical user.

"The cash burn here is insane! Anyone looked at their books? These guys are burning through money," said another.

The stock has risen 11.3% so far in 2025.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on