By Katherine Hamilton

Pony AI shares jumped after the company said cost-cutting efforts are bringing it closer to profitability.

The stock gained half its value Monday, hitting $10.54, and continuing a 132% run up over the past five days. It is still down 32% this year.

The Chinese robotaxi company said during an auto show last week it can now build its most advanced autonomous driving system for 70% less than before. The cost cutting brings it closer to single-unit breakeven, which means it books a profit every time a new robotaxi joins its fleet, Chief Technology Officer Lou Tiancheng told The Wall Street Journal Monday.

Lou said the company is optimizing software, which has tripled in performance under the same computing power.

Bernstein analysts expect Pony AI will be able to reach the breakeven goal by the end of this year, but likely won't be profitable for at least five more years.

The company plans to start mass producing robotaxis halfway through this year.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

April 28, 2025 13:08 ET (17:08 GMT)

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