Shares of Pony AI Inc (PONY) experienced a surge of 5.58% intraday on Tuesday, riding on the company's promising advancements in autonomous driving technology. The Chinese tech firm, focused on robotaxis and autonomous trucks, has been garnering attention for its industry-leading Virtual Driver technology and its partnership with Toyota.

Pony AI's autonomous driving system has been deployed in several Chinese cities, including Beijing, Shanghai, Guangzhou, and Shenzhen, where the company operates a fleet of over 250 robotaxis. The firm has also made strides in the long-haul trucking industry, with its autonomous trucks operating in key logistics corridors across eastern China.

According to Bank of America analyst Ming Hsun Lee, Pony AI is "ahead of robotaxi/robotruck peers in China in terms of accumulated testing mileage, testing speed and licensing progress." Lee has assigned a Buy rating to the stock, with a price target of $18, implying a potential upside of 22.5% from current levels.