Pony AI Inc. (NASDAQ:PONY) is one of the AI stocks under $20 to buy now. On December 17, Barclays analyst Jiong Shao initiated coverage of Pony AI with an Equal Weight rating and $15 price target. Although the firm expressed confidence that robotaxi technology is largely prepared for the Chinese market and possesses a viable commercial framework, it emphasized that industry hurdles remain. Ultimately, Barclays suggested that the primary value of the sector’s frontrunner lies in its foundational robotics and automation capabilities rather than the traditional ride-hailing service itself.
In its Q3 2025 earnings report, Pony AI Inc. (NASDAQ:PONY) disclosed a net loss of $61.6 million for the quarter, which was an increase from the $42.1 million loss in the same period last year. Pony AI reported a 90% year-over-year increase in robotaxi revenue, with a specific surge of 233% in fare-charging revenue during Q3. This growth was fueled by launching fully driverless commercial operations across Guangzhou, Shenzhen, Beijing, and Shanghai. Registered users more than doubled year-over-year, and operational efficiency improved significantly, with wait times reduced by ~50% compared to 2024. The company has also extended its global footprint to eight countries through partnerships with local transportation providers.
A major milestone for the quarter was achieving citywide unit economics break-even for the Gen 7 robotaxis in Guangzhou. In this market, daily net revenue per vehicle reached RMB299, averaging 23 orders per day. These figures account for hardware depreciation and operational costs, including charging and remote assistance. Pony AI is currently on track to reach a 1:30 remote assistance-to-vehicle ratio, which validates the scalability of their business model as they transition toward wider commercialization.
Pony AI Inc. (NASDAQ:PONY), through its subsidiaries, engages in the autonomous mobility business in the People’s Republic of China, the US, and internationally. The company develops a proprietary Virtual Driver that uses a unified AI software stack.
While we acknowledge the potential of PONY to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PONY and that has 100x upside potential, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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