On Friday, Pony AI Inc PONY became the first company authorized to operate a paid, fully driverless robotaxis in Shenzhen’s Nanshan District on March 27.

The company expanded commercial operations to connect Nanshan with its existing service zone in Baoan District, covering two of Shenzhen’s most dynamic urban areas.

Nanshan District is Shenzhen’s economic powerhouse, with a GDP nearing 1 trillion Chinese yuan in 2024 and close to 2 million residents, surpassing cities like San Francisco.

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This expansion builds on Pony.ai’s successful launch of robotaxi services in Shenzhen’s Baoan District in 2024, where more than 4 million people reside.

The latest permit enables the company to establish Shenzhen’s first cross-district driverless network, linking Nanshan’s tech hubs (including Qianhai, Houhai, and Shenzhen Bay) with Baoan’s central areas and critical infrastructure such as Shenzhen Baoan International Airport. Commuters now enjoy seamless connectivity between business, residential, and transport hubs.

The company continues to lead autonomous mobility innovation across China’s tier-1 cities. Fully driverless robotaxis in Beijing and Guangzhou averaged over 15 daily paid rides per vehicle in the first six months of 2024.

Pony AI has accumulated nearly 45 million kilometers in autonomous testing, including 5 million kilometers in driverless mode.

Pony AI stock declined over 15% in the last 12 months. Pony AI reported a fourth-quarter sales decline of 29.8% to $35.52 million. Robotaxi services revenue dipped 61.9% to $2.6 million. Robotruck services revenue surged 72.7% to $12.9 million.

The company reported an adjusted EPS loss of 31 cents versus 20 cents loss a year ago.

Other Robotaxi Services

In February, Chinese autonomous startup WeRide Inc WRD bagged approval to deploy its latest Robotaxi, the GXR, for fully driverless ride-hailing services in Beijing.

It marks the WeRide’s second Robotaxi model to operate without a safety driver in the city and GXR’s first major commercial rollout in China, following its debut on Uber Technologies, Inc’s UBER platform in Abu Dhabi last December.

In March, the California Public Utilities Commission (CPUC) approved Tesla Inc’s TSLA application for a transportation charter-party carrier permit (TCP), which allows the company to manage a fleet of vehicles for pre-arranged trips.

Elon Musk pivoted to robotaxis amid slowing sales, promising driverless services in California and Texas this year. In October, Tesla launched the Cybercab, a concept robotaxi without steering or pedals.

Price Action: PONY stock is up 1.38% at $10.30 premarket at last check Friday.

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