Pony AI Inc. (NASDAQ:PONY) stock continued its upward trajectory in Tuesday's pre-market trading, soaring 5.04% following a remarkable 47.22% surge on Monday. The autonomous driving technology company has been garnering significant investor attention due to positive announcements regarding its path to profitability and expansion plans.

The stock's impressive performance can be attributed to several factors. Pony AI's chief technology officer, Lou Tiancheng, recently announced that the company is nearing profitability after overcoming significant challenges in material costs. Tiancheng revealed that Pony AI can now build its autonomous driving system for 70% less than before, marking a substantial improvement in the company's cost structure.

Adding to the optimism, Pony AI has unveiled plans to develop advanced autonomous driving technology and launch robotaxi services in the near future. CEO James Peng disclosed that the company is in talks with Tencent Cloud to offer robotaxi services through popular platforms like WeChat. This potential partnership could provide Pony AI with access to Tencent's vast user base and cloud infrastructure, potentially accelerating the adoption of its autonomous driving solutions.