Pony.ai Attracts Premium Capital as Funds Chase the Next Tech Transformation
GUANGZHOU, China, Aug. 18, 2025 /PRNewswire/ -- Leading investment management firms are backing Pony.ai.
Recent corporate filings reveal ARK Invest, Cathie Wood's firm, invested roughly US$12.9 million in the Chinese autonomous driving company in August. This marks ARK's first investment in a Chinese firm solely focused on Level 4 (L4) autonomous driving technology development and commercialization.
ARK wasn't alone in backing Pony.ai. Exchange and corporate filings reveal the robotaxi operator attracted at least 14 major global institutional investors in Q2, including prominent names like Baillie Gifford and Nikko Asset Management – firms renowned for successful investments in Tesla, Tencent, Alibaba, and Meituan. This broad backing stands in sharp contrast to many U.S. investors shifting away from Chinese assets amid geopolitical tensions and tariffs clouding the growth outlook.
ARK's strategy is clear: invest in emerging high-tech companies Wood believes can transform industries. As detailed in ARK's "Big Ideas 2025" report, the firm projected the ride-hailing market could surge to a US$10 trillion value by 2030, with global robotaxi fleets potentially reaching around 50 million vehicles. As Wood has emphasized, a robotaxi company's success hinges significantly on its cost optimization. Pony.ai's recent earnings and outlook provided compelling reasons for investor confidence.
In Q2, the company reported a striking 158% year-on-year increase in robotaxi revenues. This growth was supported by the ramped-up production of its seventh-generation robotaxi models. By expanding its fleet and securing more regulatory permits in densely populated urban centers, Pony.ai is meeting rising user demand.
More importantly, Pony.ai outlined a clear path to profitability – offering the rare certainty investors seek.
Founder and CEO James Peng highlighted key factors in a recent CNBC interview: "Unit economics are paramount. The Gen-7 vehicle boasts a 70% lower cost than its predecessor. We've also significantly reduced operational costs: our remote assistant-to-vehicle ratio has been significantly improved and it is expected to hit 1:30 by the end of the year, insurance costs fell 18%, and ground support and charging operations are more efficient."
"Based on these metrics," Peng added, "we are confident in Gen-7's unit-level profitability. Further scaling the fleet will then drive corporate-level profitability." Pony.ai targets a fleet of 1,000 robotaxis by year-end – a threshold the company believes will achieve positive unit economics. Progress is rapid: just two months after unveiling Gen-7 at the late-April Shanghai Auto Show, around 200 new vehicles have rolled off production lines, bringing the total fleet to roughly 500 units.
Beyond production, Pony.ai is accelerating user acquisition. Regulators recently granted the company a commercial permit to operate fare-charging services in parts of Shanghai's Pudong areas, the financial heart of the eastern Chinese city. This makes Pony.ai the only company with fully-driverless commercial permits across all four Chinese tier-1 megacities (Beijing, Shanghai, Guangzhou, Shenzhen).
Service hours have also expanded to 24/7 in Guangzhou and Shenzhen. Furthermore, a recent partnership will integrate Pony.ai's robotaxi service into Tencent's ubiquitous WeChat platform, unlocking access to its massive user base exceeding one billion.
Bolstered by a clearer commercial outlook and solid safety and tech validation, Pony.ai is winning favor not just with funds, but also recognition from analysts. Following the Q2 earnings release, major institutions including Goldman Sachs, Huatai, UBS, and Daiwa all rated the stock "buy". Goldman set a price target of US$24.5, indicating 54.5% upside compared to Pony.ai's closing price of US$15.86 on August 15.
UBS analysts, in an Aug. 5 research note, stated: "By the late 2030s, we expect the robotaxi market value to reach US$183 billion in China and US$394 billion in international markets excluding the U.S., assuming gradual operational expansion and improving regulatory clarity." Pony.ai is best positioned for robotaxi commercialization, the UBS analysts added.
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SOURCE Pony.ai