Pony.ai shares rise over 17% pre-market; Q1 2025 revenue up 12% YoY, Robotaxi fleet to reach 1,000 by year-end.

Pony.ai shares rise over 17% pre-market; Q1 2025 revenue up 12% YoY, Robotaxi fleet to reach 1,000 by year-end.

Pony.ai (NASDAQ: PONY) reported its unaudited financial results for the first quarter of 2025, revealing robust revenue growth and ambitious expansion plans. The company's shares rose by over 17% in the pre-market session, reflecting investor confidence in the reported performance.

Total revenues reached $14.0 million, up 12% year-over-year (YoY), driven primarily by a 200% increase in Robotaxi services. Fare-charging revenues surged by approximately 800%, indicating strong commercial traction in the autonomous vehicle deployment segment. However, the company reported a net loss of $37.4 million due to significant investments in its seventh-generation autonomous driving system (Gen 7) and one-time IPO-related expenses.

Pony.ai expanded its operational footprint to over 2,000 square kilometers across major Chinese cities and secured strategic partnerships with Uber and Tencent. The company aims to expand its fleet to 1,000 vehicles by the end of the year and commence Gen 7 mass production from mid-2025.

The company's Gen 7 autonomous driving system achieved a 70% reduction in bill-of-materials (BOM) costs compared to previous generations. This cost efficiency is a significant milestone in the sector, addressing fundamental challenges such as hardware costs and durability for commercial deployment.

Operating expenses increased by 56.3% to $58.4 million, resulting in an operating loss of $56.0 million compared to $34.7 million in Q1 2024. The increase was primarily due to investments in Gen 7 mass production, one-time IPO-related expenses, and increased employee compensation to strengthen R&D capabilities.

Pony.ai's cash position remains strong at $738.5 million, although it decreased from $825.1 million at year-end 2024, reflecting the cash burn associated with scaling operations. The company's proprietary AI foundation model, PonyWorld, generates 10 billion kilometers of testing data weekly, creating a high-fidelity training environment essential for safety validation.

Despite the increased losses, Pony.ai's Q1 2025 results indicate promising growth trajectories and strategic investments that are pressuring near-term profitability. Investors should closely monitor whether the company can translate its technological advantages and expanded footprint into accelerating revenue growth that eventually outpaces its significant R&D spend.

References:
[1] https://www.stocktitan.net/news/PONY/pony-ai-inc-announces-unaudited-first-quarter-2025-financial-e4eti84xhro9.html