UBS Names Top 2 Robotaxi Stocks to Ride China's $183 Billion Market

UBS analyst Paul Gong believes the total addressable market for robotaxis in China will reach $183 billion by the late 2030s. He recommends two Chinese robotaxi stocks, Pony AI and Apollo, as best positioned to capture growth in the sector. Gong notes Pony's Virtual Driver package allows for multiple business lines and mass adoption. Both stocks carry a "Strong Buy" consensus.

UBS analyst Paul Gong has expressed optimism about the future of the robotaxi market in China, predicting that the total addressable market will reach $183 billion by the late 2030s. Gong's report highlights the significant growth potential for robotaxis, particularly in China's four major tier-1 cities, where Pony AI has already started commercial fee-charging and driverless operations.

Gong recommends two Chinese robotaxi stocks, Pony AI and Apollo, as the best positioned to capture growth in the sector. Pony AI, in particular, has impressed analysts with its capability to handle complex road situations without human intervention, as demonstrated during test drives in Guangzhou and Shenzhen. Pony AI's Virtual Driver package allows for multiple business lines and mass adoption, further enhancing its competitive advantage.

Both Pony AI and Apollo carry a "Strong Buy" consensus rating from analysts, reflecting the market's confidence in their growth prospects. Pony AI's stock has seen significant price appreciation, climbing 14.6% from the end of trading last Friday through the close of Thursday's session, according to data from S&P Global Market Intelligence [1].

Investors should be aware of the ample risk associated with Pony AI stock and should choose carefully whether buying shares is right for them. While the market is bullish on the stock, it is essential to consider the potential risks and uncertainties, such as regulatory changes and technological challenges, that could impact the company's performance.

In conclusion, UBS analyst Paul Gong's bullish outlook on the Chinese robotaxi market and his recommendations for Pony AI and Apollo stocks provide valuable insights for investors looking to capitalize on the growth potential in the sector. However, investors should approach these opportunities with a balanced perspective, considering both the risks and the potential rewards.

References:
[1] https://www.wsj.com/business/auto-transport-roundup-market-talk-6d46bcb1
[2] https://www.fool.com/investing/2025/08/07/why-pony-ai-stock-is-galloping-higher-this-week/