By Al Root

Pony AI stock soared after reporting much better than expected first-quarter sales. The company is making progress in robo-taxi development in China.

Tuesday, the autonomous driving technology company reported first-quarter sales of $34.3 million, up from $14 million a year ago. Wall Street was looking for $22.3 million.

Pony isn't profitable yet. Its first-quarter operating loss was $58.3 million, in line with Wall Street projections.

Sales matter more to the self-driving start-up than earnings at this point. What's more, guidance was increased, too. "We raise our 2026 robo-taxi revenues target from 3 times to more than 3.5 times the level in 2025," reads part of a news release. "And year-end robo-taxi fleet size target from 3,000 units to over 3,500 units."

The current fleet is about 1,700 vehicles.

Guidance implies 2026 robo-taxi revenue of about $58 million. Wall Street currently projects closer to $50 million. Pony AI also generates revenue from its autonomous truck and software licensing businesses.

Pony AI stock was up 11% in premarket trading Tuesday at $9.90, while S&P 500 and Dow Jones Industrial Average futures were up 0.7% and 0.5%, respectively.

Coming into Tuesday trading, Pony AI stock was down 38% this year and down 49% over the past 12 months.

Shares dipped 15% in late March after the company reported fourth-quarter numbers that were also better than expected. Still, sales declined year over year, spooking investors.

They feel better about Pony's first-quarter report and the progress made rolling out robo-taxis with its partners in China. Pony doesn't make the cars. It makes the brain that drives the cars.

Write to Al Root at allen.root@dowjones.com

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May 26, 2026 07:06 ET (11:06 GMT)

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