Pony AI (PONY) is moving closer to profitability after implementing cost-cutting measures, the Wall Street Journal reported Monday, citing the company's Chief Technology Officer Lou Tiancheng.

Tiancheng said the cost cuts bring Pony AI nearer to achieving single-unit breakeven, a target under which the company books a profit each time a new robotaxi joins its fleet, according to the Journal.

The robotaxi company can now build its autonomous driving system for 70% less than before using software optimization, Lou told the news outlet, saying that software performance has tripled under the same computing power.

Pony AI could reach the breakeven goal by the end of the year, and that it's unlikely to post a profit for at least five years until its fleet rises to around 50,000 vehicles, the Journal reported, citing Bernstein analysts.

Pony AI did not immediately reply to a request for comment from MT Newswires.

Shares were up 49% in recent trading.

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