Pony AI Inc (PONY) shares are surging 5.15% in pre-market trading on Wednesday, following a series of positive developments for the autonomous driving technology company. The stock's upward momentum is primarily driven by Cathie Wood's Ark Invest making a significant investment and the company's strong performance in expanding its robotaxi services.
On Tuesday, Ark Invest's ARK Autonomous Technology & Robotics ETF (ARKQ) purchased 898,930 shares of Pony AI, valued at approximately $12.9 million. This substantial investment comes on the heels of Pony AI's announcement of a 75.9% year-over-year increase in sales, attributed to the expansion of its robotaxi services. The vote of confidence from a prominent investor like Cathie Wood has likely contributed to the positive sentiment surrounding Pony AI's stock.
Adding to the optimism, Pony AI's CEO James Peng confirmed that the company is on track to roll out 1,000 robotaxis by the end of 2025, with over 200 units already produced this year. The company is also exploring expansion into European markets, with testing currently underway in Luxembourg. Analysts from Daiwa maintain a buy rating for Pony AI, projecting that robotaxi paid-ride services will become a major revenue contributor from 2027 onwards. The company is expected to reach unit breakeven for its Gen-7 robotaxi this year and achieve fleet-wide unit breakeven by 2026, further solidifying its position in the autonomous driving industry.