Why Cathie Wood's ARK Invest And Others Are Betting On Pony.AI
Pony AI Inc. (NASDAQ:PONY), a Chinese autonomous driving startup, is drawing strong support from global investors as it scales its robotaxi fleet and advances toward profitability. The company’s growth trajectory comes at a time when many U.S. funds remain cautious on Chinese tech assets.
Recent filings show ARK Invest, led by Cathie Wood, invested nearly $12.9 million in Pony.AI this month. It is the firm’s first direct stake in a Chinese company focused exclusively on Level 4 autonomous driving.
ARK wasn’t alone in backing Pony.AI. Filings show that the robotaxi firm attracted at least 14 major global investors in the second quarter, including Baillie Gifford and Nikko Asset Management, which were noted for their big wins on Tesla (NASDAQ:TSLA), Tencent, Alibaba (NYSE:BABA), and Meituan (OTC:MPNGY).
Related: Pony AI’s Robotaxi Expansion Accelerates Multi-Year Growth Trajectory, CEO Says
In the second quarter, Pony.AI recorded a 158% year-over-year increase in robotaxi revenue, fueled by production of its seventh-generation fleet. CEO James Peng said the new models are 70% cheaper to build than earlier versions and deliver significantly lower operating costs. The company aims to operate 1,000 vehicles by the end of the year, a level it believes will secure unit-level profitability.
Pony.AI has become the only operator with fully driverless commercial permits in all four of China’s largest cities, Beijing, Shanghai, Guangzhou, and Shenzhen. Regulators recently allowed it to charge fares in parts of Shanghai’s Pudong district.
In a major boost to adoption, Pony.AI struck a partnership to integrate ride-hailing into Tencent’s WeChat platform, which has over one billion active users.
Analysts have noted Pony.AI’s progress. Goldman Sachs issued a buy rating with a $24.50 forecast, projecting more than 50% upside from mid-August levels. UBS analysts estimate China’s robotaxi market could reach $183 billion by the late 2030s, with international markets outside the U.S. adding nearly $400 billion.
The investment reflects ARK’s conviction that autonomous ride-hailing could be transformative. The firm projects the sector could become a $10 trillion global market by 2030. Wood’s strategy spans multiple disruptive themes, as highlighted by her fund’s recent decision to add more Amazon shares alongside its Pony.AI bet.
Price Action: At last check Monday, PONY shares were trading lower by 1.39% at $15.64.
Read Next:
Photo by Tada Images via Shutterstock