PonyAI (PONY, Financial) has unveiled a strategic collaboration with Shenzhen Xihu Corporation, the leading taxi operator in the city, to introduce a fleet exceeding 1,000 of PonyAI’s seventh-generation Robotaxis in Shenzhen. The initiative represents a pivotal step in merging autonomous driving technology with local transport infrastructures, utilizing an "asset-light + AI-empowered model." This approach is designed to expedite the widespread launch of safe and efficient autonomous mobility services to a large clientele in China's major cities.
Shenzhen Xihu Corporation brings substantial experience in fleet management, having years of expertise in operating taxi services while adhering to local regulatory standards. This expertise is instrumental in supporting PonyAI's efforts to expand their Robotaxi offerings. By combining Xihu’s operational proficiency with PonyAI’s cutting-edge AI technology and understanding of customer needs, the partnership aims to provide a superior autonomous mobility experience.
The agreement involves jointly rolling out over 1,000 Gen 7 Robotaxis in Shenzhen, with Xihu focusing on fleet operations and safety, benefiting economically from these operations. Meanwhile, PonyAI will concentrate on advancing AI innovations and scaling up Robotaxi services, fostering a mutually advantageous collaboration and propelling significant advancements in autonomous vehicle deployment.
PONY Key Business Developments
Release Date: May 20, 2025
- Revenue: USD 14 million, up 11.6% year-over-year.
- Robotaxi Service Revenue: USD 1.7 million, up 200.3% year-over-year.
- Fare Charging Revenue Growth: Approximately 800% year-over-year.
- Gross Profit: USD 2.3 million.
- Gross Margin: 16.6%, down from 21% in the same period last year.
- Total Operating Expenses: USD 58.4 million, up 56.3% year-over-year.
- Non-GAAP Operating Expenses: USD 49.3 million, up 35% year-over-year.
- Net Loss: USD 37.9 million, compared to USD 20.8 million in the first quarter of 2024.
- Non-GAAP Net Loss: USD 28.4 million, compared to USD 25.7 million in the first quarter of 2024.
- Cash and Cash Equivalents: USD 738.5 million as of March 31, 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Revenue from Pony AI Inc (PONY, Financial)'s Robotaxi services doubled year-over-year for the first quarter of 2025, with fare charging revenues growing approximately eightfold.
- The launch of the seventh-generation autonomous driving system achieved a 70% reduction in bill of materials costs compared to the previous generation, showcasing significant technological advancements.
- Pony AI Inc (PONY) has secured production capability to grow its fleet to 1,000 vehicles by the end of the year, enhancing fleet density across its operational network.
- Strategic partnerships with key players like Tencent and Uber have been established, expanding Pony AI Inc (PONY)'s ecosystem both domestically and internationally.
- The company has achieved a remote assistant to driver ratio of up to 20, significantly reducing operational costs and demonstrating efficiency improvements.
Negative Points
- Gross margin decreased to 16.6% from 21% in the same period last year, primarily due to changes in revenue mix and increased ADC sales.
- Total operating expenses increased by 56.3% year-over-year, driven by investments in mass production for Gen 7 and one-time expenses associated with share awards.
- Net loss for the first quarter was USD37.9 million, compared to USD20.8 million in the first quarter of 2024, indicating increased financial strain.
- Cash reserves decreased from USD825.8 million at the end of 2024 to USD738.5 million as of March 31, 2025, due to R&D efforts and supply chain preparations.
- The company anticipates natural volatility in revenues from quarter to quarter due to the project-based nature of some revenue streams, which could affect financial predictability.
