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Pony AI (PONY) Reports Strong Revenue Growth, Net Loss Shrinks

On Tuesday, Pony AI Inc. (NASDAQ:PONY) reported Q1 2025 results, which were better than street expectations. Going into the results, the market was expecting clarity on two things: one, growth in Robotaxis, and second, a roadmap to profitability.

Results were positive on both these fronts. While total revenue for the quarter grew 12% year-over-year to $14 million, Robotaxi Services revenue more than tripled to $1.73 million, primarily driven by expanding its public-facing fare-charging operations in Tier-one cities in China. Robotruck Services and Licensing business, which currently makes up almost 90% of total revenue, together grew 3%.

A fleet of electric vehicles in a cityscape, representing the companies success in urban transportation.

The company is in a rapid growth phase, which keeps its profitability in check. Despite the investments continuing in the quarter, the company’s adjusted net loss narrowed to $0.1 per share from $0.28 in Q1 2024. Interestingly, the company plans to expand its robotaxi fleet to 1,000 vehicles by the year-end, with its recently unveiled seventh-generation autonomous driving system, which enables the company to cut costs significantly. Pony is already working with partners like Uber Technologies Inc. (NYSE:UBER), Singapore’s ComfortDelGro Corp., and Tencent Holdings (OTC:TCEHY) to expand its robotaxi services.

With a disruptive business model, the company is expected to grow significantly in the coming years as it plans a large-scale expansion of services later in 2025. According to Bloomberg data, analysts expect the company to reach breakeven on each new robotaxi added by 2026 and become profitable by 2029. In a note published in April, Purdy Ho, an analyst at Huatai Securities, estimated that Pony AI’s robotaxi service could achieve a 12% penetration in China’s first-tier city ride-hailing market by 2030 and should achieve revenue of around $3.4 billion.

Pony AI Inc. (NASDAQ:PONY) is an autonomous driving technology company focused on developing self-driving solutions for both passenger and commercial transportation. Its AI-driven mobility offerings include robotaxi services and autonomous freight transport, aiming to revolutionize the future of mobility.

While we acknowledge the potential of PONY as an investment, 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 the cheapest AI stock.

READ NEXT: 10 Best Debt Free IT Penny Stocks To Buy and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None.

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
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  • 140 Metas
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  • 65 Microsofts
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Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

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  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
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