Pony AI Stock (NASDAQ: PONY) Rallying Pre-Market as Robotaxi Revenue Grows

Pony AI's stock (NASDAQ: PONY) is on the rise this morning, with a gain of 7.87% in the pre-market coming as the company released its first-quarter earnings. Revenue came in at $75.03 million for the trailing twelve months, a 4.35% increase year-over-year.

Revenue on the quarter increased to $13.98million, up from $12.52million in the same period last year. EPS came in at -$0.10, also a steady improvement on -$0.28 last year.

CEO and Co-Founder James Peng outlined an area of significant growth, when stating “revenues in the first quarter were fueled by a 200% year-over-year rise in Robotaxi services”.

However, these gains have come at a cost: Pony AI posted a net loss of $37.4 million for Q1 2025, a significant deterioration from the $20.8 million loss reported in the same quarter last year. The company’s trailing twelve-month net loss now stands at $274.12 million, with an EPS of -$2.40.

This widening loss, despite top-line growth, reflects the capital-intensive nature of the autonomous driving industry. Heavy investments in technology development, safety validation, and market expansion are necessary for long-term leadership but can weigh heavily on short-term profitability.

Wall Street analysts remain broadly optimistic on Pony AI’s prospects, with a consensus “Strong Buy” rating and a 12-month price target of $20.45 implying a further +10% upside from current levels. Analysts cite the company’s robust revenue growth, strategic partnerships, and leading position in autonomous driving technology as key drivers for long-term appreciation.

However, they also caution that continued operating losses and regulatory uncertainties could temper gains, especially as the company navigates its next phase of commercialization.

One other date to watch on the horizon in the near term is 26th May. This is when the mandatory lock-up period for insider shares is set to expire. This event typically allows early investors and insiders to sell their shares, which has the potential to introduce additional selling pressure and volatility to the stock.

With the stock having gained 304% over the past month of trading, PONY is now 40.92% above the trading back in Nov 2024, when the company first listed. With an improving revenue picture, and sentiment returning bullish, this could be one to watch today on the open.