Global autonomous driving leader Pony.ai (Nasdaq: PONY) highlighted significant progress in robotaxi mass production and deployment in its latest earnings report.
The company's second-quarter report, issued on Tuesday, revealed robust growth in its robotaxi business and confirmed steady fleet expansion toward the target of 1,000 vehicles by year-end. According to the report, Pony.ai has produced over 200 seventh-generation (Gen-7) robotaxis in collaboration with its manufacturing partners, increasing its total fleet to over 500 vehicles. This achievement follows just three months after the company debuted its Gen-7 robotaxi lineup at the Shanghai Auto Show in late April.
Dr. James Peng, Founder and CEO of Pony.ai, stated: "The second quarter marked a significant milestone in our journey toward large-scale production and deployment, further solidifying our leadership in the robotaxi industry. Our path toward positive unit economics is also clear, as we made substantial improvements in key cost areas such as remote assistance and vehicle insurance.”
Pony.ai's total Q2 revenue surged 76% year-over-year, with its strategic robotaxi service revenues rising 158% during the quarter. Other robotaxi metrics also demonstrated strong growth, following years of technological validation and public-facing operations that are increasingly winning acceptance. Fare-charging revenue rose over 300% year-over-year, while registered users on its ride-hailing platform grew by 136% annually.
Dr. Tiancheng Lou, Founder and Chief Technology Officer of Pony.ai, commented: "Our leading position in the robotaxi industry is built on two key pillars, fully-driverless and scale -- both now operationally validated. This dual achievement, evidenced by our accelerating metrics, enables our rapid deployment across major cities while maintaining uncompromising safety standards.
As Gen-7 vehicles progressively rolled off production lines and entered testing, Pony.ai’s servicing capabilities are expected to gradually gain momentum. The company has expanded testing and operations across all four major Chinese tier-1 cities. During July, the company initiated around-the-clock robotaxi service in the southern Chinese cities of Guangzhou and Shenzhen. Testing hours in Beijing were also extended to operate 24 hours a day.
In Shanghai, Pony.ai has secured a permit to provide fully driverless commercial robotaxi services within the Pudong New Area. This makes Pony.ai the sole company holding fully driverless commercial robotaxi permits in all four of China's tier-one cities. The company rapidly followed this authorization with the launch of fully driverless, fare-charging services in areas of Pudong adjacent to Shanghai's financial hub, Lujiazui. Services continued uninterrupted even during a recent typhoon, demonstrating extensive operational experience and technological readiness to handle varied traffic scenarios and extreme weather conditions.
Meanwhile, Pony.ai is broadening its global footprint alongside this accelerated scaling. The company established a strategic collaboration with Dubai’s Roads and Transport Authority (RTA) to integrate its autonomous driving technology into the city’s future transportation ecosystem. The partnership involves a multi-phase rollout, commencing with supervised robotaxi trials in 2025.
Pony.ai also strengthened its presence in South Korea by securing permits enabling countrywide robotaxi operations. In the Gangnam district, Q2 saw the launch of nighttime and early-morning operations. In Europe, the company initiated public road testing in Lenningen, Luxembourg, during the quarter.
The company reported a Q2 net loss of US$53.3 million, reflecting increased investments in research and development, alongside operational expenses. These expenditures primarily support the mass production of Gen-7 vehicles and expanded personnel costs ahead of planned large-scale commercial deployment.
Concurrently, Pony.ai achieved meaningful progress in cost efficiency. Improvements in the remote assistant-to-vehicle ratio and reductions in vehicle insurance premiums contributed to this gain. "We are confident in achieving a 1:30 ratio by the end of 2025, enabling one remote assistant to monitor up to 30 vehicles," the company stated in its earnings filing.
Pony.ai’s recent advancements in mass production, business operations, global expansion, and cost management significantly clarify its trajectory toward achieving positive unit economics. This progress appears well-received by the market. Analyst ratings compiled by Bloomberg currently show Pony.ai holds 8 "Buy" ratings, with no "Sell" or "Neutral" ratings.
Bullish market sentiment is further reflected in institutional investments. According to latest exchange filings, Pony.ai attracted inflow from at least 14 non-Chinese institutional investors during the second quarter. Notable participants include Baillie Gifford and Nikko Asset Management, firms known for successful investments such as Tesla, Tencent, Alibaba and Meituan. In June, Pony.ai was included in the Nasdaq Golden Dragon China Index, becoming the only company dedicated to autonomous driving in the index, which was widely tracked by global investors.
"As we enter the second half of this pivotal 'year of mass production,' we look forward to delivering on our commitment and accelerating our multi-year growth trajectory," said Peng.
