Pony AI Inc. (NASDAQ:PONY) continued its impressive rally in Tuesday's pre-market trading, soaring 5.23% following a remarkable 47.22% surge on Monday. The autonomous driving technology company has been attracting significant investor attention due to recent positive announcements regarding its path to profitability and expansion plans.

The stock's strong performance can be attributed to several factors. Pony AI's chief technology officer, Lou Tiancheng, recently revealed that the company is nearing profitability after overcoming significant challenges in material costs. Tiancheng announced 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 and boosting investor confidence.

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 and fueling further growth prospects for the company.