PONY stock plunges as Chinese self-driving company faces challenges
Pony AI, a Chinese self-driving company, faced a notable decline in its stock price, dropping nearly 11% after releasing its Q4 and full-year 2024 financial results. In the fourth quarter of 2024, the company reported total revenue of $35.5 million, a substantial 29.8% decrease from the same period in 2023. While the revenue from its robotaxi services saw a significant decline of 61.9% Y/Y, generating only $2.6 million in the fourth quarter, revenue from robotruck services surged to $20 million, marking a notable 72.7% increase from the previous year’s Q4. Additionally, Pony AI disclosed an adjusted earnings per share (EPS) loss of 31 cents in Q4, compared to 20 cents in the corresponding quarter of the prior year. For the full year 2024, the company’s revenue totaled $75 million, reflecting a modest increase of 4.3% compared to 2023, while it recorded an EPS loss of $2.40, up from $1.40 in the prior year.
Amidst these financial figures, Pony AI revealed its ambitious four-year plan to achieve profitability while expanding its operational footprint. Notably, the company recently launched its first-ever paid robotaxi service at a major railway hub in urban Beijing, connecting Beijing South Railway Station with Yizhuang, a southeast suburb in Beijing. Having secured approval for testing autonomous vehicles on highways in Beijing, Pony AI is now positioned to offer autonomous ride-hailing services linking crucial transport hubs such as Beijing South Railway Station, Beijing Daxing Airport, and Yizhuang Railway Station. Dr. James Peng, CEO and co-founder of Pony AI, emphasized the company’s strategic approach of being “robotaxi-first, China-first, and tier-one cities-first,” which he believes sets them ahead in the drive towards broad commercialization.
Furthermore, the company’s Chief Technology Officer and co-founder, Tiancheng Lou, highlighted the impressive safety track record of Pony AI’s robotaxi technology, which has led to a significant reduction in insurance policy costs compared to human-driven taxis. Peng outlined Pony AI’s roadmap to profitability, targeting 2029 as the goal year. The company aims to introduce 1,000 additional robotaxis in 2025, with plans to scale up to more than 10,000 over the next three years. Currently, Pony AI operates 300 robotaxis across key Chinese cities like Beijing, Shanghai, Shenzhen, and Guangzhou. Peng emphasized a shift in perspective towards robotaxis, urging a transition from viewing them as trials or experiences to an essential part of the future of transportation.
Since its listing on Nasdaq in November, Pony AI raised about $452 million through its initial public offering and private placement. However, its stock performance has been lackluster, with shares down by 20.4% year-to-date. Despite the recent financial setbacks, Pony AI remains committed to its strategic vision of merging cutting-edge technology with practical applications in the rapidly evolving self-driving car industry.
