Core Viewpoint - Pony AI (PONY) has experienced a significant share price decline of 29.5% over the past 30 days, contrasting with a minor decline of 1.4% in the Zacks Transportation - Equipment and Leasing industry [1][4]. Company Overview - Pony AI, an autonomous-driving company based in Guangzhou, China, made its Nasdaq debut in November 2024 and previously saw its shares surge over 245% from mid-April to mid-May 2025 [4][8]. - Despite the recent drop, PONY's fundamentals remain strong, with the current stock price at $12.65, which is 88.8% below its 52-week high, indicating potential for growth [5][8]. Fleet Expansion Plans - Pony AI plans to expand its robotaxi fleet from approximately 250 vehicles to over 1,000 by the end of 2025, with large-scale deployment expected to ramp up in the second half of the year [8][9]. - The company is enhancing its sourcing strategies to adapt to changing demand and ensure efficient mass production, supported by collaborations with government entities [9][11]. Strategic Partnerships - Pony AI has formed several strategic partnerships, including a joint venture with Toyota Motor to mass-produce fully driverless robotaxis in China [10]. - A partnership with Uber Technologies aims to deploy PONY's robotaxis on the Uber platform, starting in a key Middle Eastern market [10]. - Collaboration with Shenzhen Xihu Corporation Limited will facilitate the deployment of over 1,000 seventh-generation robotaxis in Shenzhen, integrating autonomous driving with local mobility networks [10]. Supply Chain Resilience - PONY's operations are largely insulated from tariff risks due to local sourcing of its supply chain, which has been diversified to enhance resilience against geopolitical uncertainties [11]. - Recent developments suggest a potential trade deal between the U.S. and China, which could further benefit PONY's operations [11]. Market Potential - The Chinese robotaxi market is rapidly growing, valued at approximately $12 billion in 2024, driven by government support and a large population [12]. - PONY is well-positioned to capitalize on this growth, supported by a cost-effective supply chain and increasing demand for autonomous vehicles [12]. Investment Outlook - Given the favorable market conditions and PONY's strategic initiatives, it is considered a solid investment opportunity, with a Wall Street average target price of $23.5 suggesting an upside of over 85% from current levels [13].