UBS Says Pony AI (PONY) Is Best Positioned for Robotaxi Commercialization in China

Pony AI Inc. (NASDAQ:PONY) is one of the AI Stocks Analysts Are Watching CloselyOn August 4, UBS analyst Paul Gong initiates coverage on the stock with a Buy rating and a $20 price target.

According to UBS analysts, Pony is best positioned for China’s robotaxi commercialization considering it is the only robotaxi company to initiate commercial fee-charging and driverless operations in all four tier-one Chinese cities.

The firm came away impressed from test drives, particularly looking at the company’s ability to handle complicated road situations without human help.

“We initiate coverage with a Buy rating and a PT of US$20, implying 53% upside potential. Pony is the first and only robotaxi company to start commercial fee-charging and driverless robotaxi operations in all four tier 1 cities in China. During our test drives in Guangzhou and Shenzhen, Pony impressed us with its capability in handling complicated road situations without human intervention. We forecast a 2025-30 sales CAGR of 96% on Pony’s robotaxi technology and operating scaling efforts.”

Pony AI Inc. (NASDAQ:PONY) specializes in autonomous mobility, offering AI-driven robotruck and robotaxi services, intelligent driving software, and vehicle integration solutions.

While we acknowledge the risk and potential of PONY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PONY and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.