Pony AI Stock Is Galloping Higher Monday: Here's What Investors Are Watching

Pony AI Inc PONY shares are running Monday following reports that the Chinese robotaxi company has accelerated its timeline to profitability.

What To Know: Pony AI chief technology officer Lou Tiancheng told The Wall Street Journal that the company is getting closer to becoming profitable following a series of cost-cutting measures.

Following the release of three new robotaxis at the Shanghai Auto Show last week, company executives reportedly said Pony AI can build its most advanced autonomous driving systems for 70% less than before.

Analysts estimated that the robotaxi company has lowered its bill-of-materials costs for its robotaxis from approximately $137,000 to approximately $41,000. Analysts further estimated that Pony AI could be able to reach single-unit breakeven goals by the end of 2025.

The Pony AI technology chief said in the interview with The Wall Street Journal that the company has been able to cut costs through software optimization, adding that Pony AI tripled performance using the same level of computing power.

The report indicates that Pony AI is planning to start mass producing its robotaxis by mid-2025 and is targeting adding an additional 700 vehicles to its fleet by the end of the year.

Pony AI was publicly listed on the Nasdaq in late 2024. The company reported a loss of 31 cents per share for the fourth quarter, down from a loss of 20 cents per share in the prior year’s quarter. Sales for the period totaled $35.52 million, according to Benzinga Pro.

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Is PONY A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Pony AI‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Pony AI does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Pony AI will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

PONY Price Action: Pony AI shares were up 47.7% Monday afternoon, trading at $10.36 at the time of publication, according to Benzinga Pro.

Photo: Tada Images/Shutterstock.