Pony AI Price Target (PONY) Set At $20 In Bullish New Analyst Coverage

Pony AI's stock price (NASDAQ: PONY) jumped 7.82% to start the new week off strong, with a bullish initiation by UBS analyst Paul Gong supporting the move higher. The stock is currently trading at $14.06 with the new “Buy” rating and $20 price target from UBS suggest a potential 40% upside from here.

This endorsement arrives as Pony AI aggressively expands its autonomous driving operations across China and internationally.

The UBS analyst's confidence stems from Pony AI's unique position in the Chinese robotaxi market. Gong highlighted that Pony AI is the only company to have launched commercial, fee-charging, driverless operations in all four of China's Tier 1 cities: Beijing, Shanghai, Guangzhou, and Shenzhen.

Impressed by the company's ability to navigate complex road situations without human intervention during test drives, UBS forecasts a robust 96% annual sales growth through 2030.

Beyond China, Pony AI has been actively pursuing global expansion. A recent memorandum of understanding with Dubai's Roads and Transport Authority aims to deploy driverless taxis in the region, with supervised trials slated for later this year and a full autonomous taxi launch planned for 2026.

This move aligns with Dubai's ambitious goal of converting 25% of its transportation network to autonomous systems by 2030. Further solidifying its global reach, Pony AI has partnered with Uber Technologies to integrate its driverless taxis into Uber's platform, initially targeting a key Middle Eastern market later this year.

The company has also teamed up with Tencent, integrating its autonomous driving technology into Tencent's mobility platform and digital mapping tools.

Adding to its technological advancements, Pony AI unveiled its seventh-generation robotaxi platform at the Shanghai Auto Show in April 2025, boasting significant cost reductions and enhanced capabilities. The company plans to begin mass production by mid-2025, aiming to expand its fleet to over 1,000 vehicles by year-end.

From a financial standpoint, Pony AI's trailing twelve months (TTM) revenue stands at $76.48 million, with net losses of $296.51 million. This reflects the company's early-stage, high-growth profile, characterized by substantial investments in technology and expansion.

The company's gross margin is approximately 14.5%, while its net profit margin is -387.68%. Despite a 4.4% year-over-year revenue increase in 2024, losses have also increased, highlighting the challenges of scaling autonomous driving technology.

The upcoming earnings report on August 12, 2025, will be a crucial event for investors. Consensus expectations point to continued revenue growth, with forecasts looking for a 68% year-over-year increase for the robotaxi segment, driven by fleet scaling in China and international expansion.

Ultimately, Pony AI is positioned as a key player in the autonomous driving sector, particularly in robotaxi commercialization. While price weakness this year presents a challenge, analyst coverage remains largely positive, driven by high growth forecasts and the belief that the company is well-positioned to scale autonomous mobility operations across major markets.

The upcoming earnings report could prove pivotal for the next leg, with PONY currently trading at the mid-point of the $13-$15 range that has proved to be the comfort zone for much of this year.