BEIJING, China, July 23, 2025 (GLOBE NEWSWIRE) -- PONY AI Inc. (“Pony.ai” or the “Company”) (Nasdaq: PONY), a global leader in large-scale autonomous mobility, today announced that the seventh-generation (“Gen-7”) Beijing Automotive Industry Corporation (“BAIC”) Robotaxi model began road testing in Beijing. With multiple Gen-7 Robotaxi models now undergoing road testing, Pony.ai is making significant progress to advance toward large-scale production and commercial deployment. The BAIC Robotaxi fleet is now ...

Group 1: Market Overview - Investors are awaiting earnings reports from major tech companies like Google and Tesla, while digesting tariff-related news, leading to a decline in semiconductor and AI sectors, which ended the Nasdaq's seven-day rally [1] - The S&P 500 index rose by 0.06%, and the Dow Jones increased by 0.40%, while the Nasdaq fell by 0.39% [2] - Nvidia dropped over 2.5%, while Google A shares rose by 0.65%, marking the longest consecutive rise since the end of 2010 [2] Group 2: Commodity and Currency Movements - U.S. Treasury yields fell across the board, with the 10-year yield dropping nearly 3 basis points [3] - The U.S. dollar experienced a three-day decline, decreasing by nearly 0.5% [3] - Gold prices surged over 1%, reaching $3,400, marking a one-month high [4] Group 3: Sector Developments - The global first Tesla restaurant opened, featuring "Cybertruck" and humanoid robots for food delivery, with some customers waiting 13 hours [6] - The UK approved a £38 billion project for the Sizewell C nuclear power station [7] - OpenAI announced a partnership with Oracle to expand a 4.5 GW data center, accelerating AI infrastructure [8] Group 4: Investment Trends - The State-owned Assets Supervision and Administration Commission emphasized the role of state-owned enterprises in supporting high-quality development in Tibet, focusing on infrastructure investment [11] - A report indicated that the lithium carbonate futures rose over 2.7%, with a 13% increase over the past seven trading days, driven by regulatory actions in lithium resource production [15] - The Hainan Free Trade Port is expected to release positive policy signals regarding its construction and operation, which could significantly boost the regional economy [16] Group 5: Aging Population and Healthcare - The National Health Commission released a plan to promote integrated medical and elderly care services, responding to the growing demand for elderly health services [17] - The elderly population in China is projected to exceed 300 million by 2025, with the market size for elderly care expected to grow to ¥16.1 trillion, reflecting a growth rate of over 15% [17]

Core Insights - Pony.ai has achieved a significant milestone with its Level 4 (L4) automotive-grade autonomous driving domain controller, surpassing 2 million kilometers of on-road testing, showcasing its hardware reliability and software adaptability [1] - The seventh-generation autonomous driving system, unveiled at the Shanghai Auto Show, is designed for a lifecycle of 10 years or 600,000 kilometers, representing a major advancement in performance, durability, and cost-efficiency [2] - The domain controller utilizes three NVIDIA OrinX chips and a fourth for redundancy, delivering 1,016 TOPS of computing power, while achieving a 50% to 80% reduction in size, weight, power consumption, and cost [3] Cost Efficiency and Lifecycle - Pony.ai has reduced the domain controller's cost by 80% compared to the previous generation, significantly lowering the total lifecycle cost of the system [2] - The integration of various essential functions into a single unit has streamlined vehicle layout, reduced manufacturing costs, and minimized potential failure points [4] Safety Features - The system incorporates a multi-layered safety architecture with "Fail Operational" capability, allowing seamless switching to a redundant system in case of primary system failure [5] - The "safety first" philosophy is emphasized through full-vehicle redundancy and advanced algorithmic intelligence, enabling the system to consistently outperform human driving capabilities [6] Production and Expansion - Pony.ai's seventh-generation Robotaxis are now in mass production, with a planned fleet of 1,000 autonomous vehicles in 2025, marking a key step towards achieving economies of scale and operational excellence [7]

Group 1 - Dow futures rose by 0.01%, S&P 500 futures fell by 0.11%, and Nasdaq futures decreased by 0.27% [1] - OpenDoor, a real estate technology company, surged over 15% in pre-market trading, marking its sixth consecutive day of significant gains, becoming a popular stock among retail investors [1] - Bawang Tea's stock increased by over 3% in pre-market trading as the company announced its return to the Vietnamese market with a new store opening in Ho Chi Minh City [1] - Pony.ai's stock rose by over 2% in pre-market trading after the company announced the road testing of its seventh-generation autonomous driving system in Shenzhen [1] - Sanofi has reached a final agreement to acquire Vicebio for up to $1.6 billion, which includes an upfront payment of $1.15 billion and additional milestone payments [1] Group 2 - JPMorgan predicts that $500 billion will flow into the U.S. stock market in the second half of the year, primarily from retail investors [2] - BitGo Holdings Inc. has secretly submitted an IPO application amid optimistic sentiment in the digital asset market [2] - Fitch Ratings downgraded the outlook for 25% of U.S. industries to "deteriorating" due to increased policy risks and economic uncertainty [2] - The U.S. Congressional Budget Office estimates that the "Big and Beautiful" tax and spending bill will increase the U.S. deficit by $3.4 trillion over the next decade [2] Group 3 - Federal Reserve Chairman Jerome Powell is scheduled to speak at a regulatory meeting related to large bank capital framework reviews, focusing on Basel III, stress tests, and capital requirements [3]

Core Viewpoint - Pony.ai, known as the "global Robotaxi first stock," is facing scrutiny from short-seller Grizzly Research, which claims the company has fabricated data and is the worst performer in the autonomous taxi sector [1][3]. Company Overview - Pony.ai was founded in 2016 and is headquartered in Nansha District, Guangzhou. It launched its Robotaxi service in 2018 and is one of the first companies in China to obtain autonomous driving service permits in major cities like Beijing, Shanghai, Guangzhou, and Shenzhen. It successfully went public on NASDAQ on November 27, 2024, becoming the "global Robotaxi first stock" [3]. Allegations and Financial Performance - Grizzly Research's report cites serious allegations from apparent insiders, claiming that Pony.ai has actively falsified data related to its autonomous driving software algorithms, with management allegedly aware of and attempting to cover up these actions. This behavior is deemed reckless and dangerous for a company developing autonomous driving technology [3][4]. - The financial situation of Pony.ai appears dire, with worsening conditions post-IPO. The company heavily relies on related-party transactions. Revenue figures from 2022 to 2024 show a growth trend: $68.39 million, $71.90 million, $75.03 million, and $13.98 million for the first quarter of 2024. However, net losses have increased: $148 million, $125 million, $275 million, and $37.4 million for the first quarter of 2024 [3][4]. Research and Development Costs - The continuous losses are attributed to high costs, particularly in technology, product development, and marketing, with R&D expenses consistently exceeding $100 million annually. Specific R&D expenditures from 2022 to 2024 were $154 million, $122 million, and $240 million [4]. Competitive Position and Regulatory Challenges - Grizzly's report suggests that Pony.ai lags behind competitors like Baidu Apollo and WeRide, requiring significant time and funding to catch up. The company lost its permit for autonomous vehicle testing in California due to an incident a few years ago and faced a similar situation in China in May, leading to a temporary service disruption. Currently, Pony.ai is only permitted to conduct autonomous vehicle testing with a safety driver present in the U.S. [4]. Market Pressure - Following the expiration of the lock-up period for shares, Grizzly believes that Pony.ai's business and stock price will face increasing pressure. As of July 11, 2024, the stock price was $12.77 per share, reflecting a slight decline of 0.93% [6].

Investment Rating - The report maintains a "Buy" rating for Pony AI Inc. with a 12-month price target of $26.00, indicating an upside potential of 109% from the current price of $12.44 [12]. Core Insights - Pony AI is positioned as a leader in Level 4 autonomous mobility, focusing on robotaxi and robotruck services in China, particularly in tier-1 cities [8][6]. - The company anticipates significant growth in Robotaxi operation revenues, projecting a compound annual growth rate (CAGR) of 188% from 2025 to 2027, with revenue contribution expected to reach 52% by 2027 [1][2]. - Management is optimistic about the turnaround in unit economics and profitability per car, primarily due to the introduction of generation 7 vehicles, which have hardware costs approximately 70-80% lower than previous generations [7][2]. Summary by Sections Robotaxi Market in China - China is the largest ride-hailing market, accounting for 40% of global transaction value, with tier-1 cities (Beijing, Shanghai, Guangzhou, Shenzhen) representing 40% of this market [2]. - The management emphasizes the importance of expanding the Robotaxi fleet size in these cities to enhance operational efficiency and reduce passenger wait times, thereby increasing daily orders per car [2][6]. Robotaxi Operations in Non-China Markets - Pony AI is also exploring opportunities in non-China markets, including South Korea, Singapore, the Middle East, and Luxembourg, while advocating for regulatory support to facilitate Robotaxi operations [6][3]. Unit Economics and Profitability - The management is confident that unit economics will improve due to the cost efficiency of generation 7 vehicles, which utilize automotive-grade sensors and computing platforms, optimizing both performance and cost [7][1]. - The company aims to achieve positive gross margins for Robotaxi operations by 2026, with expectations of reaching 12% and increasing to 29% by 2027 as the fleet size grows and operational efficiencies improve [1][8]. Financial Projections - Revenue projections for Pony AI indicate growth from $75 million in 2024 to $150.4 million by 2027, while EBITDA is expected to improve from negative figures to a more manageable level over the same period [12][8].

Core Viewpoint - Pony.ai has achieved a significant milestone with the mass production of its seventh-generation Robotaxi, moving closer to its goal of expanding its fleet to 1,000 vehicles by the end of 2025, which sets the stage for large-scale commercial deployment [1][5]. Group 1: Production and Testing - The Gen-7 Robotaxi models from Guangzhou Automobile Group (GAC) and Beijing Automotive Industry Corporation (BAIC) have entered mass production, showcasing the successful integration of Pony.ai's autonomous driving technology [2]. - Road testing for the Gen-7 Robotaxi has commenced in Guangzhou and Shenzhen, marking a transition from controlled environments to real-world traffic scenarios [3]. Group 2: Technological Advancements - The Gen-7 autonomous driving system features three key advancements: the use of 100% automotive-grade components, a 70% reduction in bill-of-materials (BOM) costs for the autonomous driving kit compared to the previous generation, and a platform-based design that allows for rapid adaptation across various vehicle models [4]. Group 3: Strategic Goals - The year 2025 is designated as the "year of mass production" for Pony.ai, with plans to build a fleet of over 1,000 vehicles by year-end, indicating a focus on scalable growth and significant commercial opportunities [5].

Core Viewpoint - The development of autonomous driving in China over the past decade has been marked by both significant advancements and notable setbacks, leading to a cautious and regulated environment for the industry [9][10][19]. Group 1: Historical Context and Initial Developments - In 2015, the Chinese government issued "Made in China 2025," highlighting autonomous driving as a key direction for the automotive industry's transformation [2]. - The first domestic autonomous bus test occurred in August 2015, marking a significant milestone in the industry [3][4]. - Baidu's autonomous vehicle showcased its capabilities in mixed traffic conditions in October 2015, further establishing the potential for autonomous driving in urban environments [5][6]. Group 2: Regulatory Changes and Industry Response - A fatal accident involving a vehicle in NOA mode led to stricter regulations, prohibiting misleading terms like "autonomous driving" in marketing [11][12]. - Companies such as Xiaomi, Li Auto, and others adjusted their marketing language to comply with new regulations, shifting from "smart driving" to "assisted driving" [14]. - The regulatory environment has led to a more cautious approach to testing and deploying autonomous vehicles in China [14]. Group 3: International Developments and Market Expansion - In contrast to China's regulatory tightening, international markets, particularly in the U.S. and the Middle East, are embracing autonomous driving technologies [15][16]. - Companies like Waymo and Tesla are making significant strides in commercializing autonomous taxi services and expanding operational areas [15][16]. - Chinese companies are increasingly looking to international markets for growth, with Baidu and Pony.ai establishing partnerships in the UAE for deploying autonomous fleets [17][18]. Group 4: Industry Challenges and Market Dynamics - The autonomous driving sector has experienced a rollercoaster of growth and decline, with many startups facing challenges due to regulatory pressures and market saturation [20][21]. - The number of new autonomous driving companies surged until 2018, but the industry faced a downturn following high-profile accidents and regulatory scrutiny [21][24]. - By 2021, the industry saw a resurgence driven by the pandemic, with a focus on contactless delivery and logistics applications [25][26]. Group 5: Financial Performance and Market Sentiment - Despite initial optimism, many newly listed autonomous driving companies have seen their market valuations decline significantly post-IPO [30][31][32]. - Companies like Horizon Robotics have bucked the trend, experiencing growth due to their strategic positioning as a key supplier for major automotive manufacturers [33]. - The market is witnessing a consolidation phase, with only a few companies expected to survive and thrive in the competitive landscape [37]. Group 6: Legislative and Regulatory Needs - The lack of comprehensive national legislation on autonomous driving in China is seen as a major barrier to the industry's growth and commercialization [42][45]. - In contrast, countries like the UK and the US have made significant legislative progress, establishing clear frameworks for the operation of autonomous vehicles [43][44]. - Industry experts advocate for the urgent need to develop a robust legal framework in China to facilitate the safe and effective deployment of autonomous driving technologies [45]. Group 7: Future Outlook - The next decade is expected to bring further maturation of the autonomous driving industry, with a focus on safety, regulatory compliance, and sustainable business models [48][49]. - The industry is moving towards a more pragmatic approach, emphasizing the integration of technology into everyday life rather than mere technological showcase [48].

Group 1 - Nasdaq Golden Dragon China Index increased by 1.6%, outperforming the three major US stock indices, which are down by up to 0.6% [1] - Notable gains in popular Chinese concept stocks include Bilibili up over 7.8%, Baidu and Yum China up to 5.3%, and Li Auto up over 4.3% [1] - Significant stock movements include Yunmi Technology up 36.14%, XinYong up 30.77%, and Bit Origin up 24.94% [1] Group 2 - Yunmi Technology's current price is $2.26, with a rise of 36.14% and a year-to-date increase of 54.79% [2] - XinYong's current price is $4.25, with a rise of 30.77% and a year-to-date increase of 429.28% [2] - Bit Digital's current price is $3.56, with a rise of 21.12% and a year-to-date increase of 21.53% [2]

Core Insights - Pony AI Inc. has partnered with Dubai's Roads and Transport Authority to advance Level 4 autonomous mobility solutions through a robotaxi unveiling ceremony [1][2] - The collaboration aims to integrate self-driving technology into Dubai's transportation network, enhancing urban mobility efficiency and reducing traffic congestion [2] - Initial supervised robotaxi trials are scheduled to begin in late 2025, leading to the eventual launch of fully driverless services [3] Company Overview - Pony AI Inc. is recognized as a global leader in the commercialization of autonomous mobility, utilizing its Virtual Driver technology for a full-stack autonomous driving solution [5] - The company has operational permits for robotaxi services in four major markets: the United States, China, South Korea, and Luxembourg, indicating its extensive operational experience [4]