Barclays Validates Pony AI’s (PONY) Commercial Tech but Cites Regulatory and Scaling Hurdles

Pony AI Inc. (NASDAQ:PONY) is 1 of the AI stocks nether $20 to bargain now. On December 17, Barclays expert Jiong Shao initiated sum of Pony AI with an Equal Weight standing and $15 terms target. Although the steadfast expressed assurance that robotaxi exertion is mostly prepared for the Chinese marketplace and possesses a viable commercialized framework, it emphasized that manufacture hurdles remain. Ultimately, Barclays suggested that the superior worth of the sector’s frontrunner lies successful its foundational robotics and automation capabilities alternatively than the accepted ride-hailing work itself.

In its Q3 2025 net report, Pony AI Inc. (NASDAQ:PONY) disclosed a nett nonaccomplishment of $61.6 cardinal for the quarter, which was an summation from the $42.1 cardinal nonaccomplishment successful the aforesaid play past year. Pony AI reported a 90% year-over-year summation successful robotaxi revenue, with a circumstantial surge of 233% successful fare-charging gross during Q3. This maturation was fueled by launching afloat driverless commercialized operations crossed Guangzhou, Shenzhen, Beijing, and Shanghai. Registered users much than doubled year-over-year, and operational ratio improved significantly, with hold times reduced by ~50% compared to 2024. The institution has besides extended its planetary footprint to 8 countries done partnerships with section proscription providers.

A large milestone for the 4th was achieving citywide portion economics break-even for the Gen 7 robotaxis successful Guangzhou. In this market, regular nett gross per conveyance reached RMB299, averaging 23 orders per day. These figures relationship for hardware depreciation and operational costs, including charging and distant assistance. Pony AI is presently connected way to scope a 1:30 distant assistance-to-vehicle ratio, which validates the scalability of their concern exemplary arsenic they modulation toward wider commercialization.

Pony AI Inc. (NASDAQ:PONY), done its subsidiaries, engages successful the autonomous mobility concern successful the People’s Republic of China, the US, and internationally. The institution develops a proprietary Virtual Driver that uses a unified AI bundle stack.

While we admit the imaginable of PONY arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None. This nonfiction is primitively published at Insider Monkey.