Pony AI (PONY) Surges 6.98% on Gen-7 Robotaxi Scaling, Dubai Deal and Institutional Backing

Pony AI (PONY) surged 4.52% on Thursday, marking a two-day rally of 6.98% and reaching an intraday high not seen since October 2025. The stock’s 8.25% intraday gain highlights renewed investor confidence in the autonomous driving company’s strategic momentum.

Recent developments underscore Pony AI’s progress in scaling its Gen-7 Robotaxi technology, with mass production and road testing underway. The company aims to deploy 1,000 vehicles by year-end, leveraging partnerships with automakers like Toyota and Guangzhou Automobile to integrate its autonomous systems into mass-market vehicles. This move could generate recurring licensing revenue and accelerate commercialization.

International expansion is another catalyst, with a high-profile collaboration in Dubai’s smart city initiative. CEO James Peng emphasized the company’s competitive edge in handling complex urban environments, particularly in China’s chaotic traffic, which he views as a strength in markets with similar challenges. The strategic focus on cost efficiency and adaptability further positions Pony AI to compete with rivals like Waymo.

Financially, institutional investors including Allspring and Mirae Asset have increased stakes, signaling optimism about the company’s long-term potential. Despite a $274 million net loss in the previous fiscal year, Pony AI’s $745 million cash reserves are seen as sufficient to sustain operations until potential profitability by 2029. However, geopolitical risks, such as U.S. regulatory uncertainties, remain a concern, with the company pivoting to prioritize R&D in the U.S. while focusing commercialization in Asia and the Middle East.

Market reactions have been mixed, with a 16.7% surge in June following index inclusion and acquisition speculation, followed by a 3.3% decline in July due to financial and geopolitical concerns. Analysts remain divided, with some citing technological advancements and partnerships as positives, while others highlight the need for clarity on profitability. Pony AI’s ability to balance innovation with financial sustainability will be critical in shaping its stock’s trajectory moving forward.