PONY

Image source: The Motley Fool. Tuesday, Aug. 18, 2026 at 8:00 a.m. ET Head of Capital Markets and Investor Relations - George Shao Chairman of the Board and Chief Executive Officer - Dr. James Peng Chief Technology Officer - Dr. Tiancheng Lou Chief Financial Officer - Dr. Leo Wang Operator: Ladies and gentlemen, thank you for standing by, and welcome to Pony AI Inc.'s Second Quarter 2026 Earnings Conference Call. [Operator Instructions] As a reminder, today's conference call is being recorded, and a webcast replay will be available on the company's Investor Relations website at ir.pony.ai. I will now turn the call over to your host, George Shao, Head of Capital Markets and Investor Relations at Pony.ai. Please go ahead, George. George Shao: Thank you, operator, and hello, everyone. We appreciate you joining us today for Pony AI's Second Quarter 2026 Earnings Call. Earlier today, we issued a press release with our financial and operating metrics, which is available on our IR website. An earnings presentation, which we will refer to during this conference call can also be accessed and downloaded on our Investor Relations website. Joining me on today's call are Dr. James Peng, Chairman of the Board and Chief Executive Officer; Dr. Tiancheng Lou, Chief Technology Officer; and Dr. Leo Wang, Chief Financial Officer of the company. They will provide prepared remarks followed by a Q&A session. Before we begin, please refer to the safe harbor statement in our earnings release, which applies to this call as we will be making forward-looking statements. Please also note that we will discuss non-GAAP measures today, which are more thoroughly explained and reconciled to the most comparable measures reported under GAAP in our earnings release available on our IR website and filings with the SEC and the Hong Kong Stock Exchange. I will now hand it over to our Chairman and CEO, Dr. James Peng. Please go ahead. Jun Peng: Thank you, George. Hello, everyone. Thank you for joining our earnings call today. We delivered another fantastic quarter highlighted by multifold expansion across the board. First, strong top line growth. Total revenue surged by 69% year-over-year, driven by a close to 8x jump in robotaxi revenue and over 9x surge in fare charging revenue. Second, rapid fleet scaling. Our robotaxi fleet expanded to 2,000 vehicles, putting us on track to deliver 3,500 vehicles by year-end. Third, expanded deployment. Domestically, we reinforced our leadership in Tier 1 cities as we surpassed 1.5 million registered users. We also improved our network density with more deployed vehicles and operational coverage. Internationally, we unlocked demand by scaling our joint deployment model. Currently, we have secured over 4,000 vehicle commitments with Uber and other overseas partners. The expanded deployment in both China and overseas markets clearly shows that our dual engine strategy is turning into robust top line growth. Looking at our domestic operations first, the L4 industry in China is entering a new phase where higher standards are required to keep the industry on a sustainable healthy trajectory. For any robotaxi company to enter into large-scale deployment, it now needs proven driverless capabilities, positive user satisfaction and verified safety records. We are perfectly positioned to capitalize on this shift because we have already been operating well ahead of this curve. These rising standards will only widen our competitive moat and solidify our leadership in China. Our confidence actually is grounded in solid results from commercial robotaxi operations. We have 3 Gen-7 robotaxi vehicle models in our daily services, including the GAC Aion V, the BAIC ARCFOX Alpha T5 and the Toyota bZ4X. We are continuously improving user experience, which is a key driver for our organic user growth as our total registered users have surpassed 1.5 million. In Guangzhou, we extended our robotaxi services into the city center, now adding over 300 square kilometers since the beginning of this year. The operational area spans across Haizhu, Tianhe, Huangpu and Panyu districts, covering a population of over 7 million. As a result, our driverless fleet is positioned to capture highly concentrated urban mobility demand. Shenzhen, known as China's Silicon Valley serves also as a great showcase of our capability to navigate highly complex traffic scenarios. Our operational resilience was rigorously validated by corner cases such as the high-demand holidays such as the Dragon Boat Festival, the peak rush hours and heavy rainstorms. Despite these demanding conditions, we effectively met high-frequency commuting demands. In addition, by seamlessly integrating 3 major transit hubs, including Bao'an International Airport, Shenzhen Bay Port and Shekou Cruise Port, we further expanded our network to provide users with greater convenience and more mobility options. Now turning into our global expansion. To meet the ever-increasing demand of L4 mobility in overseas markets, we have entered more international markets with huge consumer demand and commercial potential. We are using our joint deployment model to form global alliance, fulfilling autonomous mobility demand in these international markets and creating values for our partners. To that end, we collaborated with multiple partners to accelerate our international pipeline. Currently, we have secured over 4,000 vehicle commitments, led by over 2,000 robotaxis across 5 European cities with Uber, alongside commitments from some other partners. Meanwhile, we continue to deepen our operations in existing markets. In Luxembourg, our deployment with Bolt and Stellantis keeps moving forward. And in Singapore, our service is now officially live for the general public on ComfortDelGro's ride-hailing app called Zig. These international demands are a direct endorsement of our Gen-7 robotaxi operations in China's Tier 1 cities, where we have proven our superior driving capability, reliable 24/7 operations, high user satisfaction and positive UE. I'm confident that this proven model will continue to win partners with more vehicle deployment commitments and drive user adoption globally. Now let me elaborate a bit more on our joint deployment model. As we expand our fleet across China and overseas, we leverage existing local ecosystems and our partners' on-the-ground expertise to drive capital-efficient expansion. I am very pleased to share that the model is already delivering strong tangible commercial results. First, look at the strong monetization was validated in Q2. By broadening our partnerships, we delivered significant quarter-over-quarter growth in revenue contribution. That's a direct proof point of this JDM model's financial viability. Second, the joint deployment model is an asset-light one where our partners fund the fleet. This fundamentally enables faster scaling, lower unit costs and superior capital efficiency for our fleet expansion. Third, with fast scaling, JDM essentially unlocks massive commercial value for years to come. For example, we recently expanded our partnership with Uber to target at premium markets. This creates a highly repeatable growth engine, allowing us to attract more partners and deliver even higher growth trajectory. Now let's move to our robotruck business. Our robotruck business delivered outstanding results in Q2 with revenue jumping more than 40% year-over-year. We actually expect this growth momentum to persist and even strengthen in the second half of this year. We continue to expand our long-haul operations with Sinotrans through our joint venture. At the same time, our Gen-4 robotrucks have entered mass production and already begun commercial operations. Working with China Merchants Port, we launched our commercial deployment of robotrucks at Shenzhen's Mawan Port, where our fully driverless robotrucks operate together with other human-driven trucks. This success highlights our unique cross-segment synergies. We have leveraged our rich operational experience from urban robotaxis and long-haul robotrucks to enable our trucks to seamlessly navigate traffic interactions at the ports. As we pass the midpoint of the year, our acceleration across both domestic and international markets puts us well on track to surpass our 20 city goal by year-end. In China's Tier 1 cities, we will continue to deploy more vehicles to our fleet to widen our competitive moat and advance our scaling edge. And at the same time, we are on track to enter multiple domestic new markets. Internationally, the joint deployment model will contribute to top line growth with great capital efficiency. This dual momentum gives us greater confidence in beating our original robotaxi revenue outlook, which is exceeding 3.5x last year's level. Looking ahead, our focus remains clear, delivering long-term value creation and driving the commercialization of autonomous driving with capital efficiency. Now I will hand it over to our CTO, Tiancheng, to go over the technology progress. Tiancheng, please go ahead. Tiancheng Lou: Thank you, James. Hello, everyone. This is Tiancheng. To start, our strong Q2 momentum is driven by our unique tech stack. This foundation allows us to scale rapidly and adapt seamlessly across both domestic and international markets. Starting with our domestic market. This is where we validate our technology in most challenging scenarios and translate this mastery into commercial value. Tier 1 cities such as Guangzhou and Shenzhen are clear examples. In older urban cores and major transit hubs, roads are narrow, residential neighborhood are dense and roadside parking are common. Our World Model and the Virtual Driver proved to be more agile and precise in navigating these extreme conditions, ultimately delivering high commercial returns than regular scenarios. We also rapidly replicate this success to more high premium urban market globally. Traffic rules and driving habits vary significantly across China, Europe, the Middle East and Asia. Despite these fundamental region differences, our robust generalization enables rapid deployment. Our proven technical track record, especially in Tier 1 cities of China and Zagreb of Croatia is exactly why top-tier partners are choosing to scale with us through our joint deployment model. Beyond the driving capability, another key engine behind our expansion is efficiency. Let me now elaborate on how our unique technical and operational capabilities deliver these efficient benefits. As I shared in previous quarters, the key to enabling our robotaxi to seamlessly navigate diverse urban environment lies in our World Model precision. This is what bridges gap of so-called sim-to-real in physical AI area. In autonomous driving, closing the gap comes down to more than the probability distribution of different behaviors among traffic participants. For example, the probability of a pedestrian standing on the roadside suddenly jaywalking varies from city to city. A high precision World Model accurately captures these dynamics, enabling the Virtual Driver to handle such scenarios with confidence. Our current upgraded PonyWorld 2.0 brings this precision alignment into loop engineering. The system automatically isolates deeply hidden issues, generates targeted solutions, and validates them for real-world deployment, reducing the need for human engineers to analyze cases one by one. This also dramatically accelerates our development timeline. The old way of entering a new city takes dozens of engineers doing manual work to review local driving issues, analyze root cause of these issues, upgrade the World Model and retrain the onboard models and then deploy and validate the new model on the road. However, with PonyWorld 2.0, our system leverages AI to resolve these local changes automatically. This turns City's expansion from effort that used to take dozens of engineers into a human-in-the-loop automatic process that just a few people can run. So for example, when we went to Zagreb, we noticed local drivers almost never slowed down when they hold the right of way, even near blind spot. PonyWorld 2.0 caught this difference automatically, and we quickly trained a new version of Virtual Driver that fits local habit perfectly, with very few engineers involved. As a result, we can now launch in multiple cities with completely distinct driving environment all at once. This scalability ensures we efficiently achieve our target of 20 cities by the end of this year. This gives us the unique efficiency advantage to scale our footprint far more rapidly. On the operational side, we are also using technology to redefine efficiency. For example, we don't need a closed dedicated parking lot to charge our cars. Our robotaxis can share normal parking lot with human drivers, driving themselves to find an open charging spot without human intervention. This means a tiny ground team can easily manage charging and service for a large fleet. This optimizes personnel allocation and lower our UE cost. The vehicle to staff ratio for our ground supporters and remote assistant team has improved significantly. More importantly, it also boosts the willingness of industry partners to adopt our joint deployment model. So as James mentioned, multiple partners such as Uber are clear examples. In short, our tech-driven efficiency give us a unique operational leverage as we scale across new markets. This not only reinforce our competitive moat, but also positions our technical innovation as a core engine driving the entire industry forward. This concludes my prepared remarks. I will now pass the call over to our CFO, Dr. Leo Wang, for a closer look at our financial results. Leo, please go ahead. Haojun Wang: Thank you, Tiancheng. Hello, everyone. This is Leo. I will focus on year-over-year comparisons for the second quarter and the first half of 2026, unless otherwise noted. For detailed financials, please refer to our earnings release. This quarter, total revenues reached USD 36.2 million, representing a remarkable 69% increase from USD 21.5 million in the same quarter last year. Breaking down the strong top line growth by business segment. Most notably, our robotaxi revenue are growing 691% and the robotruck revenues growing 40%. Our phenomenal triple-digit robotaxi growth is a strong demonstration that our commercialization strategy is translating into good financial numbers. Looking deeper into robotaxi, we delivered a very strong growth this quarter. Robotaxi revenues reached a record high of USD 12.1 million, growing 691%, a further acceleration from the 395% growth compared to the first quarter. Our fare charging revenue delivered an exceptional growth rate of 849%. These rapid growth rates show that robotaxi continues to serve as our core growth engine. This acceleration was driven by several factors. First, our fare charging fleet continued to expand across more regions and specifically into core downtown areas with high economic values. Second, our joint deployment model gained significant momentum and our commercial robotaxi launched in Zagreb, Croatia has served as a powerful showcase as the first of its kind in the city center of a European capital Zagreb, has proved our high-quality service in a demanding international market and enabled us to secure additional overseas contracts. Under the joint deployment model, we are currently recognizing upfront vehicle delivery revenues, which established a solid foundation for us to have high-margin recurring revenue sharing income going forward as our fleet operations scale. What is particularly encouraging is that this acceleration is broad-based, not concentrated in a single market. In China, in this quarter, we continue to strengthen our leading position in Tier 1 cities with fast-growing scale and a strong user base. Overseas, we are building an alliance that accelerates our global footprint. For example, we have secured over 4,000 initial vehicle deployment commitments with Uber and other overseas partners. Our continuous expansion in China and overseas were translating into a rapidly increasing base of recurring robotaxi revenues. Turning into robotruck. The revenue grew 40% year-over-year to USD 13.3 million this quarter. This growth was driven by increased logistic transportation revenues. Robotruck growth is more than just about volume. It reflects the cross-segment synergies within our ecosystem from robotaxi to robotruck. As James highlighted, the Mawan Port demonstrates our ability to apply the technology and operational capabilities polished in robotaxi urban environments and robotruck long-haul routes to a new vertical. Our Intelligent Solutions segment delivered revenue of USD 10.8 million this quarter, a 4% year-over-year increase with the growth rate moderating due to the delivery fluctuation from domain controllers. For the first half of 2026, the Intelligent Solutions revenue reached approximately USD 26.3 million growing 77%, with meaningful sales contribution from domain controllers. Moving to margins. Gross profit reached USD 6.4 million, an 83.4% increase year-over-year, translating to a gross margin of 17.5% up 1.4 percentage points from 16.1% the same quarter last year. Total GAAP operating expenses were USD 72.1 million this quarter and non-GAAP operating expenses were USD 63 million representing a modest 9.6% increase. The expense increase is significantly lower than our revenue growth rate of 68.8%. As Tiancheng mentioned, our leading PonyWorld Model 2.0 and AI-powered closed-loop R&D framework allows the same engineering team to handle far more work across different cities and a complex corner case analysis. The R&D efficiency is directly visible in our financial numbers. We are scaling globally without proportionally scaling our cost base. We continue to see our operating loss margin narrowing and the operating leverage beginning to materialize as revenue scale. The loss from operations was USD 65.7 million, a modest 7.3% increase. The operating margin narrowed dramatically from negative 285.6% in Q2 2025 to negative 181.5% this quarter, an improvement of over 100 percentage points. On a non-GAAP basis, loss from operations was USD 56.7 million, increased by less than 5% year-over-year. Net loss narrowed significantly to USD 45.4 million, a 14.9% year-over-year decrease compared to Q2 2025. The net loss margin narrowed from negative 248.3% to negative 125.2%, an improvement of more than 100 percentage points. From a broader perspective, our revenue growth rate significantly outpaced our non-GAAP operating expense growth rate, clearly demonstrating economics of scale and operating leverage. Turning to our balance sheet. Cash and cash equivalents, short-term investments, restricted cash and long-term wealth management instruments stood at USD 1.39 billion as of June 30, 2026, compared to USD 1.44 billion as of March 31, 2026. We continue to maintain a prudent cadence in cash management and maintain a robust financial position. Net cash used in operating activities was USD 44 million this quarter compared to USD 25.4 million in the second quarter of 2025. The increase was due to normal working capital fluctuation, especially the settlement of accounts payable during the current quarter, coupled with strategic investment in inventory and prepaids to support our fleet expansion in the second half this year. Capital expenditures were USD 32.2 million this quarter, bringing first half CapEx to USD 44.3 million. This was mainly driven by the fleet and autonomous driving kit CapEx as we see robotaxi acceleration in both domestic and overseas market as well as increasing spending in data centers to support our greater scale deployment and continuous R&D. As we scale up our fleet, we expect to maintain capital discipline, supported by our partners' co-investment under the joint deployment model framework. Our capital allocation strategy is designed to balance disciplined investment with scalable growth. Specifically, we invest in our core technology and owned fleet in key domestic markets, while partners contribute fleet capital and the local operating capability through the joint deployment model. This allows us to expand our revenue-generating footprint across China and international markets without a proportional increase in capital intensity. Together, with approximately 2,000 vehicles produced operating footprint across the world, more than 1.5 million registered domestic users and USD 1.39 billion cash reserve, we have the operating momentum, global opportunities and financial resources to execute our full year target and support sustainable growth beyond 2026. Meanwhile, with our recent inclusion in Hong Kong listing Stock Connect, we are excited to welcome onshore investors and maintain committed to transparent market engagement and the long-term shareholder value creation. I will now turn the call over to the operator to begin our Q&A session. Thank you. Operator: [Operator Instructions] The first question today comes from Ming-Hsun Lee with Bank of America. Ming-Hsun Lee: Congrats for the good results. I only have one question. Given that Uber partners with several autonomous driving companies worldwide, what are the main reasons that made Uber choose Pony in its European rollout. Jun Peng: Thanks, Ming Hsun. This is James, and I'll take this one. As you can see that I'm actually quite pleased that we have signed commercial agreement with Uber to deepen our collaboration. I think the reasons Uber decided to work closely with us actually quite straightforward. Uber always looks for autonomous driving partners whose technology is reliable at scale, and also whose cost structure brings the attractive economics. That's exactly the two reasons that we can offer on the table. We actually worked with Uber back in early 2025. At that time, our Gen-7 Robotaxis just started the deployment in China. And at that time, there were some doubts whether our autonomous driving capabilities can handle the European cities, especially the big ones where the infrastructure and road condition are typically mixed with old and new. But after a year, now look at I think the question has been answered with resounding real-world evidences. We have already launched large-scale Robotaxi commercial operations in all tier 1 cities in China. The unit economics turned positive in Guangzhou and Shenzhen. In addition, we also rolled out Europe's first commercial Robotaxi service in Zagreb, Croatia, with Uber and Verne. So all this evidence shows that our Robotaxis can cover the most complex highest demanding scenarios. And also, what we have found out is the more places a vehicle can operate, the higher utilization becomes. So on the cost side, we also can offer is even more compelling, right? Compelling with the hardware and also the operational costs. Our total cost per mile is the most competitive in the industry. I think another important reason is that the culture alignment has also been a hallmark of our collaboration between Pony and Uber. Both sides are impressed by one another's professionalism and dedication. The mutual appreciation and the mutual commitment really lead to -- right now what we have seen, the expanded collaboration. For both of our companies, the strategy is to begin with the most socially and economically meaningful markets, and then we'll even extend our mobility services to additional geographies. So what we announced about the 2000 vehicles is under the current contract. With these contracts, we become Uber's largest autonomous driving partner in Europe. Going forward, as the performance and also the economics continue to validate at scale, we'll see substantial room to expand the fleet size even further. So back to the operator. Operator: The next question comes from Tim Hsiao with Morgan Stanley. Tim Hsiao: Congratulations on the strong quarterly results. Could you please elaborate on your strategy going forward for the joint deployment model? And also, can you share more color on how the commercialization model works and operate under asset-light model? Jun Peng: Thanks for the question. This is James again. Probably let me begin with high level, and I'll probably -- regarding the details, I'll hand over to Leo. So the joint deployment model will actually accelerate our fleet expansion with high capital efficiency, both domestically and internationally. You can think of this as -- in this model, we are building a win-win model across the value chain. The success of our Gen-7 Robotaxi operations across the Tier 1 cities, it's really a showcase. It proves that our superior safety record and operational efficiency and then ultimately positive UE margins. By delivering this top-tier driving capabilities and user experience and at the same time, at very low hardware and operational costs, we can achieve high margins than our peers. Therefore, partners in our ecosystems, whether it's a mobility platform or a fleet operator they can share the most economic value per deployed vehicle. So on the high level, we can think of the joint deployment model, they give partners are naturally incentivized to commit a large portion of their fleet shares to Pony because in this model, they can maximize their total value generated together with us. Regarding the details of this business model, I'll now hand over to Leo. Haojun Wang: Yes. Thanks, James, and this is Leo. Yes, Tim, you mentioned is correct. This is an asset-light model for Pony to expand our fleet. And in most cases, there are three parties and each plays a different role. For Pony, we supply our Gen-7 Robotaxi with our Virtual Driver capability that is AI driver, a mobility platform that can introduce user demand and an operating company who can deal with fleet management and maintenance. We, of course, acknowledge in different markets, the consumer can have the choice on mobility platforms. And there are existing operating companies. So we don't want to disrupt this ecosystem in these markets. But instead, our joint deployment business model is trying to bring values and form a win-win alliance. For example, we leverage Uber and Bolt as mobility platforms to attract demand. And we are also partnered with Verne in Croatia and ComfortDelGro in Singapore as local fleet operator. So from a financial perspective, this model could generate sharing-based revenue or technology licensing fee for Pony. And this has not only broaden our revenue base but also introduce higher-margin recurring income across the entire Robotaxi operating life cycle. And as we expand our footprint into higher premium international markets, for example, in Europe, in Middle East and in other parts of Asia. We definitely think that this could lift our long-term financial outlook. And just to be clear, these 4,000 vehicle commitment from Uber and other partners will serve as a multiyear growth catalyst for 2026 and beyond. I will now turn the call back to the operator. Operator: The next question comes from Paul Gong with UBS. Paul Gong: I have one question regarding on the PonyWorld 2.0. I think Tiancheng has mentioned about its self-evolution and loop engineering. Can you please provide more color on what makes self-evolution different in autonomous driving? And how does it improve your R&D efficiency? And if we think in the future, if someone open source the World Model, would your moat be affected? Tiancheng Lou: Thank you. This is Tiancheng. I will take this one. To start, I would say autonomous driving is a physical AI. So training the onboard model or improving the world model are both built on real-world feedback. A general purpose open source world model is basically just a 3D video generator. We can generate data, but that's nowhere near enough to train our autonomous driving system. So we use world model to train the onboard model through reinforcement learning. To do this right, it is not just simulating what people do. It's about how often they do it. Take a pedestrian steadily jaywalking as example, the chance isn't 99%. It's not 1% either. So precision means matching the exact real-world probability. That level of statistical accuracy is what we mean by precision of the world model. So the probability distribution of traffic participants varies from city to city. Although our model generalized capabilities strong enough to handle extreme scenarios worldwide, we still need to fine-tune it for local driving styles. So for example, in both China and Croatia, there are drivers who change lanes without checking behind them. It happens with different probability in different places. So that's where Ponyworld 2.0 comes in. It is a fast-evolving system that is continuously improving the world model precision. In the past, our workflow was human-led. So when we enter a new city, we check data from that region then engineers will determine which scenario the current world model lack precision. Now AI drives the whole process. Human are still involved, but mostly for verification and validation. So as a result, we significantly reduced engineering resources to enter a new city. In other words, without adding R&D resources, we can either enter many new markets at the same time, quickly achieving safe and smooth L4 autonomous driving. This ability to scale is a very large moat, and I do not think it will be affected by any open source generative world model. With this, back to the operator. Operator: The next question comes from Jeff Chung with Citi. Ming Chung: This is Jeff. My question is about the domestic market. And how should we think about Pony's new outlook for the domestic market heading into the second half of the year. Jun Peng: This is James. I'll take this call. As you can see that China is our home base. I believe that domestic fleet expansion remains a significant part of our vehicle roll-out. China itself represents a massive mobility market with over 10 million taxis and ride-hailing vehicles. So it's a highly -- the reality is that also the mobility demand is highly concentrated in Tier 1 cities and Tier 2 cities. As a result, our strategy remains the same. We will start our focus from the highest valued markets and then expanding into other cities and regions. The Tier 1 cities alone account for a significant share of the national ride-hailing demand. These cities are also the ones that offer the most mature regulatory framework to support autonomous driving. Today, our scale and the commercial model in these Tier 1 cities remains industry-leading. In our larger operational hubs, such as Guangzhou and Shenzhen, we are already seeing strong growth momentum. Expanding the fleet size in these markets shortens users' wait time and boosts user retention. And then as a result, it directly translates into higher daily revenue per vehicle, even as we scale up our fleet size. So this virtuous cycle not only drives paid order growth and margins, but also reinforces our regulatory trust and also the brand recognition. At the same time, scaling allows us to amortize the operational costs, driving down our daily per-vehicle costs. So what we have seen is really a continuous improvement of our UE margins. Therefore, we will proceed with deploying more and more fleets in the Tier 1 cities to widen our competitive moats. Meanwhile, of course, second-tier and even third-tier markets are strategically vital. This year, we plan to enter key cities, such as Changsha, Hangzhou, and many of the additional Greater Bay Area cities, and potentially some other cities and regions. This will establish the foundation for these markets, essentially become a new growth engine for us to go forward. With this, back to the operator. Operator: The next question comes from Xiaoyi Lei with Jefferies. Xiaoyi Lei: This is Xiaoyi from Jefferies. My question is on robotaxi operations. You've mentioned that operational efficiency is crucial for running the fleet at scale. Could you maybe give us more color on how is that actually being achieved? For example, on the remote assistance side, vehicle utilization or charging and maintenance perspective. And then how those efficiency gains are helping you accelerate deployment, both in terms of like expanding existing cities and entering new ones? Tiancheng Lou: This is Tiancheng. Thanks for the question. So regarding the operational efficiency, I will start saying, based on our experience across the Tier 1 cities, we now have developed a deep understanding of the complexity of operating the fully driverless fleet. It is a completely different game from managing traditional taxis. At the end of the day, efficiency comes down to one thing, the fleet-to-staff ratio. With traditional taxis, it is always one-to-one. 100 cars need 100 drivers to handle everything from cleaning, charging, to daily maintenance. For us, it is not just about managing people better, but even critically on whether technology can minimize need to human involvement. For example, when all of our robotaxis return to a depot, they require zero human assistance. Autonomously navigating, locating available chargers, and executing self-parking, even in a very tight space. Because of that, we need three people for every 100 robotaxis to keep daily operations running smoothly. That is true whether we run them by ourselves or work with partners. This is directly translated into significantly lower operating costs per vehicle and advanced unit economics. Therefore, without inflating management overhead and cost, we can still expand into new cities and deploy more vehicles rapidly. We have developed this know-how into standardized operating procedures and automation tools. That is why more and more partners are joining us to adopt our joint-deployment model, making Pony's robotaxi the most efficient and profitable choice available. With this, back to the operator. Operator: The next question comes from Kai Xiao with CICC. Kai Xiao: Congratuations for the quarter. Could you give us an update on your new business initiatives, specifically the progress with your L4 light truck business. Jun Peng: Thanks, Kai. This is James, and I'll take this one. The new business initiatives, especially the L4 light truck, I think fits very well with our vision and ambition, which is autonomous mobility everywhere. The L4 light truck has a great synergy among our current product offerings. Think about it can leverage the Robotaxi's driving capabilities and cost-efficient hardware. And at the same time, the light truck also shares the same customer base with our robotruck. The light truck almost shares 100% of our Robotaxi's technology and operational infrastructure. So essentially, the development and operation can slash our costs. The light truck extends the logistics portfolio from long haul into urban delivery. It essentially unlocks a new TAM. In China alone, the active light truck fleet on the road exceeds 8 million vehicles. Also look at the current already on the ground, the low-speed robovan. Compared with that, our light truck offers 3 to 4 times the cargo capacity, and also the speed is 2x faster. As a result, it can open up heavier loaded commercial applications across the full urban supply chain. If you think about typical usage, those from distribution hubs to the shopping malls, to the supermarkets and also the convenience stores. As you recall that we actually unveiled the L4 light truck in the Beijing Auto Show, since then, it has been 4 months. And in that 4 months, we have already built a strong commercial ecosystem. The vehicle chassis are jointly developed with CATL. The vehicle is the world's first automotive-grade, fully redundant light truck, purposely built for L4 autonomous driving. Currently, we also have secured partnerships with SF Express and China Post Technology, two leading logistics operators in China. With the orders and the deployment schedules already in place, this partnership can create a strong pipeline for the autonomous urban delivery. Looking at the remaining of this year, I believe that the collaboration pipelines with even more OEMs and the fleet operators will still in the pipeline to drive scaling up. We will also integrate with urban logistic network platforms to capture even further demand. So I'm actually very excited about this new initiative. With this, back to the operator. Operator: The next question comes from Anne Ni with Everbright Securities. Yujing Ni: We know that Waymo's management recently said that "The Demo is Only 1% Of The Work." Could Pony's management share your views on this comment, please? Tiancheng Lou: Thank you, this is Tiancheng. I will take this one. First of all, this is an interesting framing, and I think it captures something real. Building an impressive demo and scaling are two entirely different games. Autonomous driving is really a probability problem. If you get into one accident, every 1,000 kilometers, sure, you can do a demo -- because a demo only covers a few kilometers. But at scale, this accident rate is a deal breaker. A typical ride-hailing vehicle drives about 300 kilometers a day. So if you have a fleet of 100 cars in 1 city. So that is tens of thousand kilometers every day. The fleet will see 10 accidents every single day, then no regulators will tolerate this and the public definitely won't. So because autonomous driving is a probability problem, risk evolves differently at scale. Proving safety takes time and mileage, and you cannot just shortcut by dumping thousands of cars on the street overnight. Fleet size and time are not interchangeable. This is also why regulators everywhere takes exactly same approach. They go step by step. A small fleet first, prove safety at that scale, then to the next level. So technically going from a demo to full scaling takes multiple 10x jumps in performance. And every jump is harder than the last. It's not just about fixing the remaining 10% of problems, but also systematically resolving 90% of the issues without creating new ones. For example, hard braking to avoid a collision may solve a problem, but it may create more rear-ended collisions. And if the underlying technical approach is wrong, safety has a hard ceiling. Therefore, proving safety to regulators is just only one of the bar. From a technical standpoint, new players have to prove they can iterate very fast, because the leaders are already miles ahead by several order of magnitude of safety. So long story short, if all you have today is a demo, you still need to prove that you can achieve multiple 10x performance jumps. And on top of that, you need time to build the trust with regulators before you can scale. So for Pony, we have already checked both of these boxes. That's why our focus for today is on expanding into more cities and deploying larger fleets. With that, back to the operator. Thank you. Operator: As there are no further questions now, I'd like to turn the call back over to the host for closing remarks. George Shao: Thank you once again for joining us today. If you have any further questions, please feel free to contact our IR team. We look forward to speaking with you in the next quarter. Operator: This concludes today's conference call. You may now disconnect your lines. Thank you. Before you buy stock in Pony Ai, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Pony Ai wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $429,223!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,317,883!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 25, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Pony AI (PONY) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Download the Complete Report Here Key Takeaways: 1H26 marks an important step in ENRD’s transition from contracted demand toward scaled deployment, with signed capacity beginning to convert into a materially faster revenue growth profile in 2H26. Revenue increased 26% y/y on a constant-currency basis to approximately $27 million from $21 million in 1H25, driven by additional capacity with existing customers and new deployments across the network. Reported revenue increased ~22% y/y to SEK263.5 million from SEK216.5 million, with transport services contributing SEK246.6 million versus SEK201.0 million and rental revenue increasing to SEK16.9 million from SEK15.5 million. The forward setup is considerably stronger than the 1H26 growth rate, with 2H26 constant-currency revenue guided to $39-$42 million, up 60%-73% y/y from $24 million in 2H25. The step-up is expected to be driven primarily by the Amazon ramp, additional U.S. and European deployments and the initial Tesla Semi rollout, suggesting the principal near-term growth constraint is shifting toward deployment capacity and execution as signed demand moves into operations. A meaningful portion of near-term growth has already moved from the JBP funnel into contracted business awaiting deployment. ENRD continues to disclose more than $800 million of potential ARR through Joint Business Plans, while the customer base has expanded to 32 customers across seven countries and cumulative operating activity now exceeds 560,000 shipments. The $800 million+ JBP figure remains non-binding, but management provided an important distinction around the December revenue ramp: the absolute majority of capacity supporting the targeted $85-$95 million December 2026 annualized revenue run-rate has already moved from JBP into signed contracts, leaving vehicle deployment and capacity activation as the primary remaining steps before revenue recognition. We believe this is an important progression because the near-term execution focus is now increasingly on converting contracted capacity into deployed revenue at higher utilization and improving margins, rather than proving underlying customer demand. Amazon is becoming both a meaningful deployment driver and a strong validation point for ENRD’s enterprise customer-acquisition model. Following an initial pilot, ENRD secured a deployment of 75 electric heavy-duty trucks across five U.S. locations in Amazon’s middle-mile network, with the fleet integrated into Amazon Relay and execution managed through Saga AI; initial deployments are already live and the majority of the first wave is expected to be operational before year end 2026. The commercial organization has also been scaled over the last 6 to 8 months, contributing to an approximately 3x increase in the sales pipeline, while deployment lead times have improved over the past 12-18 months as vehicle availability, charging infrastructure and ENRD’s operating footprint expanded. For a high-touch enterprise model with relatively long initial sales cycles, reference deployments such as Amazon should help shorten customer diligence and support expansion across additional lanes and geographies. The recently announced 500-truck Tesla Semi program materially changes ENRD’s fleet scaling equation by adding significant deployment capacity while separating a substantial portion of fleet growth from equity funding. ENRD currently operates approximately 250 vehicles and expects Amazon, other signed deployments and the initial Tesla rollout to take the fleet to just under 400 by year end 2026, implying roughly 60% growth from the current base. The 500 Tesla Semi program alone would triple the current fleet toward approximately 750 vehicles, with the majority targeted to be operational before year end 2027. The program should also support higher revenue per truck from the current roughly $300,000 annual level, with the Semi’s specifications opening additional lanes and distances and management expecting a positive contribution-margin impact as utilization increases. The vehicles will be financed through third-party solutions rather than equity, allowing ENRD to match asset-backed leverage directly against revenue-generating capacity and accelerate conversion of its $800 million+ JBP opportunity into operating revenue without incremental equity dilution. Growing network scale is building the conditions for improved FCaaS economics while creating the data and operating density required for autonomous commercialization. ENRD has now completed more than 18.5 million electric miles and 560,000 shipments across 32 customers in seven countries, providing Saga AI with a larger data set to optimize routing, charging and vehicle utilization. That same network has generated more than 5,400 driverless hours in contracted customer operations, up 64% over the preceding six months across six autonomous deployments, while management estimates that approximately 80% of customer freight demand already captured on the platform is suitable for automation over the medium term. This creates a differentiated commercialization pathway: ENRD can progressively introduce autonomous capacity into freight flows it already operates and understands rather than building a separate autonomous-demand base, while Saga and Einride Driver have begun generating SaaS revenue following the late-2025 launch of the vehicle-agnostic offering, providing an early proof point for a more capital-light technology revenue model. Contribution economics have stabilized at the transport level, with the next margin inflection dependent on higher utilization and fixed-cost absorption as fleet scale increases. Contribution margin declined from 29.2% in 1H25 to 20.7% in 2H25, remained at 20.7% in 1H26 and is guided to improve to 21%-23% in 2H26 as utilization increases, with management targeting approximately 35% over the longer term. Reported cost of sales was SEK395.4 million against SEK263.5 million of revenue, producing a gross loss of approximately SEK131.9 million and gross margin near negative 50%, versus roughly negative 40% in 1H25, with approximately SEK95 million of depreciation and amortization embedded in cost of sales. The key margin lever is therefore scaling revenue and utilization faster than vehicle and infrastructure costs, with the approaching 400-vehicle year-end fleet expected to provide greater fixed-cost absorption and support operating leverage. Investment in autonomy, technology and commercial capacity is keeping adjusted EBITDA negative despite the stronger revenue trajectory. Adjusted EBITDA widened from negative $21.0 million in 1H25 to negative $27.9 million in 2H25 and negative $34.6 million in 1H26, with 2H26 guided to negative $35 million – $37 million as ENRD continues funding autonomous development, Saga capabilities and commercial infrastructure. Constant-currency R&D spend increased ~57% y/y to $20.4 million from $13.0 million, while reported R&D rose to SEK205.9 million from SEK131.2 million and selling expense increased to SEK46.6 million from SEK35.2 million. Net loss widened to SEK1.12 billion from SEK887.4 million, although comparability was affected by SEK636 million of non-cash recapitalization expense, SEK245 million of listing-related share compensation and SEK203 million of transaction advisory costs, partly offset by a SEK582 million warrant-remeasurement gain. The 2H26 setup therefore centers on whether 60%-73% revenue growth begins to improve fixed-cost absorption while ENRD sustains elevated investment in autonomy and platform development. DAF and defense expand the commercialization pathways for Einride Driver beyond ENRD-owned autonomous hardware, reinforcing the vehicle-agnostic licensing model. The DAF partnership will integrate Einride Driver onto an established PACCAR vehicle platform, with interface work during 2026 followed by integration and commissioning in 2027 before progressing toward more scaled deployments, reducing reliance on ENRD’s proprietary cab-less trucks as autonomy commercializes. In parallel, ENRD established a dedicated defense unit following pilot contracts with NATO-allied organizations and partnered with Centinus to combine autonomous logistics with real-time threat detection and counter-UAS monitoring. General (Ret.) Keith B. Alexander, who joined ENRD’s Board earlier this year, is expected to help guide expansion across Europe and the U.S., adding defense and cybersecurity expertise to the commercialization effort. Neither channel is yet a material financial contributor, but both broaden the potential market for a vehicle-agnostic Einride Driver while supporting a more capital-light technology revenue model that does not require ENRD to own the underlying fleet. Flipturn expands Saga into charging and energy management, adding a software-led layer that can improve deployment efficiency while addressing a practical bottleneck to electric-fleet scale. The acquisition adds more than 5,000 live charging ports and over 250 MW of charging capacity under management, alongside charge-port management, energy orchestration and connectivity to third-party charging networks. Aggregating charging demand should improve access to external infrastructure and charging economics while reducing site-readiness friction as ENRD expands across more customer locations. The transaction was primarily equity funded, with SEK373.5 million of base consideration including approximately 4.41 million ENRD ADSs and only ~SEK2.4 million of cash, while up to another 3.72 million ADSs are tied to contracted ARR and product milestones through 2028. The strategic payoff will depend on whether Flipturn converts its charging footprint into incremental software revenue, lower deployment friction and better charging economics, sufficient to justify the associated equity consideration. Operating cash requirements increased with the investment and deployment ramp, making working-capital efficiency increasingly important to funding the next phase of scale. Net cash used in operating activities increased ~88% y/y to SEK536.7 million from SEK285.2 million, reflecting the heavier investment burden ahead of planned fleet and technology deployments. Working capital provided a meaningful partial offset, with SEK143.1 million in inflows supported by higher trade payables and accrued expenses as supplier activity increased alongside deployment volumes. Trade receivables increased 32% from year end 2025 to SEK27.7 million and accrued income more than doubled to SEK61.3 million from SEK29.5 million, while trade and other payables increased ~55% to SEK411.0 million and accrued expenses rose to SEK160.7 million from SEK146.8 million. As ENRD moves into a faster deployment phase, the ability to convert revenue into cash efficiently and manage supplier and vehicle-payment timing should become increasingly important to limiting incremental external funding needs as the fleet scales. The public-market transaction materially strengthened near-term liquidity, providing a larger capital base to support the current deployment ramp and technology roadmap. Cash increased to approximately SEK747.6 million, or $77 million, at June 30 from SEK278.8 million at YE25 and SEK112.8 million a year earlier, supported primarily by approximately $113 million of PIPE proceeds, although only ~$3.3 million remained in the SPAC trust following redemptions and transaction fees and expenses totaled approximately $34 million. With 1H operating cash use of SEK536.7 million and investing cash use of SEK16.3 million, ENRD will still require access to external funding as the business scales, but management’s strategy of financing revenue-generating fleet assets separately should reduce the amount of corporate capital required for vehicle growth and preserve more balance-sheet capacity for Saga, autonomy and commercial expansion. Capital allocation is increasingly centered on capital-efficient fleet scaling, with corporate capital reserved for technology and commercial expansion while vehicle growth is funded through non-dilutive asset-backed structures. Loans and borrowings excluding leases totaled approximately SEK49.3 million at June 30, while lease liabilities were ~SEK732.8 million and the prior SEK207.7 million convertible debenture had been eliminated. ENRD entered approximately SEK33.9 million of installment-financing arrangements for electric-truck purchases during 1H26 and subsequently added a $25 million U.S. equipment facility in August, with individual drawdowns carrying 42-month terms and an effective interest rate of approximately 14%. Management expects this asset-backed approach to extend to larger fleet programs, including the Tesla Semis, with vehicles financed against the underlying revenue-generating assets rather than through new equity, implying zero incremental equity dilution from those vehicle deployments. The strategy allows corporate capital to remain directed toward Saga AI, Einride Driver, R&D and commercial expansion, while making vehicle utilization, contribution margin and returns relative to financing costs increasingly important to determining whether fleet growth remains value-accretive. The December 2026 exit rate provides the clearest near-term marker of ENRD’s scale-up, with annualized revenue targeted at $85 million to $95 million as contracted capacity moves into deployment. For 2H26, constant-currency revenue is guided to $39-$42 million, up 60% to 73% y/y, contribution margin to 21%-23% and adjusted EBITDA to negative $35 million to $37 million. Combined with the $27 million 1H actual, this implies approximately $66 million-$69 million of 2026 constant-currency revenue and negative $70 million to $72 million of adjusted EBITDA based on disclosed results and guidance. The December run-rate is expected to be supported by a fleet just below 400 vehicles versus approximately 250 today, with the majority of the capacity underpinning that revenue level already contracted. ENRD plans to issue a business update with selected figures in the fall before moving to quarterly reporting in 2027. Beyond 2026, the operating roadmap increasingly centers on scaling the four engines required to reach management’s 2028 cash flow breakeven target. Management estimates that approximately 1,500-2,000 deployed vehicles are required to reach breakeven, while existing JBPs represent roughly 1.4x-1.8x the freight volume necessary to support that fleet. With the majority of the 500 Tesla Semis targeted to be operational before year end 2027, the next execution steps center on converting additional JBPs into signed capacity, adding deployments through Tesla and other OEMs, and scaling technology licensing alongside FCaaS. The demand base therefore appears sufficient to support the targeted operating footprint, making deployment cadence, capital efficiency and margin conversion the principal milestones into 2027 and 2028. Together, capital-efficient fleet expansion, contracted-demand conversion, continued autonomy and R&D investment, and increasing Saga AI and Einride Driver monetization form the four strategic engines supporting the path to cash flow breakeven. Disclaimer: Exec Edge does not publish proprietary estimates, ratings, price targets, or investment recommendations. The valuation discussion below is illustrative only and is based on company filings, management commentary, and third-party data and estimates. It does not constitute a recommendation, price target, rating, or prediction of future pricing. Valuation has reset materially below the original transaction level despite improving commercial visibility, leaving execution against the current deployment ramp as the principal potential re-rating catalyst. As of the 8/20 close, ENRD carries a pro forma market capitalization of ~$884 million and an EV of ~$812 million, approximately 46% below the ~$1.51 billion EV implied by the SPAC transaction. This reset has occurred despite 1H26 constant-currency revenue growth of 26%, a 60%-73% 2H26 growth outlook, and substantially greater deployment visibility following the Amazon and Tesla Semi programs. Using the midpoint of management’s $85-$95 million December annualized revenue run-rate as a forward revenue proxy, ENRD trades at approximately 9.0x EV/Sales, providing a materially lower valuation entry point despite a substantially larger and more visible operating base. ENRD screens at a substantial discount to direct trucking-autonomy peers while trading at only a modest premium to the broader autonomous-vehicle group. Aurora Innovation and Kodiak AI trade at 156.4x and 54.3x NTM EV/Sales, respectively, producing a direct trucking-autonomy average of 105.4x compared with ENRD’s 9.0x forward revenue multiple based on management’s December annualized run-rate. The direct peer multiples remain unusually high because both businesses are still early in their commercial revenue ramps; however, the dispersion illustrates the substantial premium public markets assign to autonomous-trucking commercialization potential. The broader AV and sensing peer group trades at an average of approximately 6.9x NTM EV/Sales, placing ENRD at a more measured ~30% premium. That premium appears supportable given ENRD’s existing commercial footprint of 32 customers across seven countries, approximately 250 deployed vehicles, more than 18.5 million electric miles and 5,400+ driverless hours, combined with an integrated FCaaS, Saga AI and autonomous-software model that provides both current freight revenue and longer-term technology monetization. The valuation increasingly centers on ENRD conversion of contracted demand into revenue at improving margins and lower capital intensity. Delivery of the $39-$42 million 2H26 revenue outlook, a fleet approaching 400 vehicles by year end 2026 and contribution margin improving from 20.7% to the guided 21%-23% would provide tangible evidence that the current deployment ramp is translating into operating leverage. Beyond 2026, execution of the 500 Tesla Semi program, continued conversion of the $800 million+ JBP opportunity and increasing Saga AI and Einride Driver monetization could support a progressively higher-margin revenue mix, while third-party asset-backed financing provides a pathway to expand revenue-generating fleet capacity with zero incremental equity dilution from those vehicle deployments. Conversely, slower deployment conversion, limited gross-margin improvement or weaker capital efficiency would justify maintaining a discount despite the scale of contracted and prospective demand. At 9.0x EV/Sales on December run-rate revenue, the potential re-rating case is therefore increasingly tied to demonstrating that higher fleet scale can convert into faster revenue growth, improving margins and lower equity capital intensity, rather than further proof of underlying customer demand. Read Exec Edge’s Initiation on ENRD Here Subscribe to our Weekly Newsletter to Receive All Research Contact: Executives-Edge.com [email protected] The post Einride AB Reports Growth Acceleration & Fleet Scale Moves Towards 2028 – Quarterly Update Report appeared first on ExecEdge.

This article first appeared on GuruFocus. Total Revenue: $36.2 million, a 69% increase year-over-year. Robotaxi Revenue: $12.1 million, a 691% increase year-over-year. Robotruck Revenue: $13.3 million, a 40% increase year-over-year. Intelligent Solutions Revenue: $10.8 million, a 4% increase year-over-year. Fare Charging Revenue: Grew 849% year-over-year. GAAP Operating Expenses: $72.1 million in Q2 2026. Non-GAAP Operating Expenses: $63 million, a 9.6% increase year-over-year. Operating Loss: $65.7 million, a 7.3% increase year-over-year. Non-GAAP Operating Loss: $56.7 million, an increase of less than 5% year-over-year. Net Loss: $45.4 million, a 14.9% decrease year-over-year. Operating Margin: Improved from -285.6% in Q2 2025 to -181.5% in Q2 2026. Net Loss Margin: Improved from -248.3% in Q2 2025 to -125.2% in Q2 2026. Cash Position: $1.39 billion in cash, cash equivalents, short-term investments, restricted cash, and long-term wealth management instruments as of June 30, 2026. Net Cash Used in Operating Activities: $44 million in Q2 2026. Capital Expenditures: $32.2 million in Q2 2026; first-half CapEx totaled $44.3 million. Warning! GuruFocus has detected 2 Warning Sign with PONY. Is PONY fairly valued? Test your thesis with our free DCF calculator. Release Date: August 18, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Total revenue surged 69% year-over-year, with robotaxi revenue jumping 691% and fare charging revenue up over 849%. Robotaxi fleet expanded to 2,000 vehicles, on track to reach 3,500 by year-end, with over 4,000 vehicle commitments from Uber and other overseas partners. PonyWorld 2.0 AI-driven closed-loop R&D framework significantly reduces engineering resources needed for new city expansion, enabling rapid scaling to 20 cities by year-end. Operating leverage is materializing: operating margin improved by over 100 percentage points year-over-year, and non-GAAP operating expense growth (9.6%) was far below revenue growth (69%). Joint-deployment model is asset-light, with partners funding fleet, leading to capital-efficient expansion and high-margin recurring revenue potential. Net cash used in operating activities increased to $44 million in Q2 2026 from $25.4 million in Q2 2025, due to working capital fluctuations and strategic inventory investments. Capital expenditures rose to $32.2 million in Q2, driven by fleet, autonomous driving kits, and data center spending, which may pressure near-term cash flow. Intelligent solutions segment revenue growth moderated to only 4% year-over-year, impacted by delivery fluctuations in domain controllers. The company still reports significant operating losses, with non-GAAP operating loss of $56.7 million in Q2, though narrowing. Dependence on partners for fleet funding under the joint-deployment model introduces execution risks, as scaling relies on partners' commitment and local operational capabilities. Q: Given that Uber partners with several autonomous driving companies worldwide, what are the main reasons that made Uber choose Pony.ai in its European rollout?A: James Peng (CEO): Uber chose Pony.ai because we offer reliable technology at scale and an attractive cost structure. Our Gen-7 robotaxis have proven their capabilities through large-scale commercial operations in all Tier 1 cities in China, with positive unit economics in Guangzhou and Shenzhen, and we launched Europe's first commercial robotaxi service in Zagreb, Croatia. Our total cost per mile is the most competitive in the industry. The 2,000-vehicle commitment makes us Uber's largest autonomous driving partner in Europe, and we see substantial room to expand the fleet size further as performance and economics validate at scale. Q: Could you please elaborate on your strategy going forward for the joint-deployment model? Can you share more color on how the commercialization model works and operates under an asset-light model?A: James Peng (CEO) and Leo Wang (CFO): The joint-deployment model accelerates fleet expansion with high capital efficiency. In this model, Pony supplies the Gen-7 robotaxi with Virtual Driver capability, a mobility platform introduces user demand, and an operating company handles fleet management. This creates a win-win alliance without disrupting existing ecosystems. Financially, the model generates sharing-based revenue or technology licensing fees, broadening the revenue base and introducing higher-margin recurring income. The 4,000-vehicle commitments from Uber and other partners will serve as a multi-year growth catalyst for 2026 and beyond. Q: I have one question regarding PonyWorld 2.0. Can you please provide more color on what makes self-evolution different in autonomous driving, and how does it improve your R&D efficiency? If someone open sources a world model, would your models be affected?A: Tiancheng Lou (CTO): Autonomous driving is physical AI, and a general-purpose open-source world model is just a 3D video generatornowhere near enough to train our system. PonyWorld 2.0 is a self-evolving system that improves world model precision by matching exact real-world probability distributions of traffic participant behaviors, which vary from city to city. AI drives the whole process, with humans involved mostly for verification. This significantly reduces engineering resources needed to enter new cities, allowing us to enter many new markets simultaneously. This scaling ability is a large moat that won't be affected by open-source generative models. Q: How should we think about Pony's new outlook for the domestic market heading into the second half of the year?A: James Peng (CEO): China is our home base, and domestic fleet expansion remains a significant part of our vehicle rollout. Our strategy focuses on the highest-valued markets firstTier 1 cities account for a significant share of national ride-hailing demand and offer the most mature regulatory frameworks. In Guangzhou and Shenzhen, expanding fleet size shortens wait times, boosts retention, and directly translates into higher daily revenue per vehicle. We will continue deploying more fleets in Tier 1 cities to widen our competitive moat, while also entering key Tier 2/3 cities such as Changsha, Hangzhou, and additional Greater Bay Area cities to establish new growth engines. Q: Could you give us more color on how operational efficiency is being achievedfor example, on the remote assistant side, vehicle utilization, or charging and maintenanceand how these efficiency gains are helping accelerate deployment?A: Tiancheng Lou (CTO): Efficiency comes down to the fleet-to-staff ratio. Traditional taxis require a one-to-one ratio, but our robotaxis require zero human assistance when returning to depotsthey autonomously navigate, locate chargers, and self-park. We need only three people for every 100 robotaxis to keep daily operations running smoothly. This translates into significantly lower operating costs per vehicle and advanced unit economics. We've developed this know-how into standardized operating procedures and automation tools, which is why more partners are adopting our joint-deployment model. Q: Could you give us updates on your new business initiatives, specifically the progress with your L4 light truck business?A: James Peng (CEO): The L4 light truck leverages robotaxi driving capabilities and cost-efficient hardware while sharing the same customer base as our robotruck business. It extends our logistics portfolio from long-haul into urban delivery, unlocking a new TAMChina has over 8 million active light trucks. Compared to low-speed robovans, our light truck offers three to four times the cargo capacity and is two times faster. The vehicle is jointly developed with CATL and is the world's first automotive-grade, fully redundant light truck built for L4. We've secured partnerships with SF Express and China Post Technology, with orders and deployment schedules already in place. Q: We know that Waymo's management recently said that a demo is only 1% of the work. Could Pony's management share your views on this comment?A: Tiancheng Lou (CTO): This captures something realbuilding a demo and scaling are entirely different games. Autonomous driving is a probability problem. A typical ridesharing vehicle drives about 300 km/day, so a fleet of 100 cars generates tens of thousands of kilometers daily. If you get one accident every 1,000 km, that's 10 accidents per day at scaleno regulator or public would tolerate that. Going from demo to full scaling takes multiple 10x jumps in performance, and every jump is harder than the last. For Pony, we've already checked both boxesproven safety and rapid iterationwhich is why our focus is on expanding into more cities and deploying larger fleets. Q: Congratulations on the strong quarterly results. Could you share more details on the financial performance and what drove the acceleration in robotaxi revenue?A: Leo Wang (CFO): Total revenues reached $36.2 million, a 69% increase year-over-year. Robotaxi revenue grew 691% to a record $12.1 million, with fare-charging revenue surging 849%. This acceleration was driven by fleet expansion into core downtown areas with high economic value and significant momentum from our joint-deployment model, including the successful launch in Zagreb, Croatia. Operating margin narrowed dramatically from -285.6% in Q2 2025 to -181.5% this quarter, and net loss narrowed 14.9% year-over-year. Our revenue growth significantly outpaced non-GAAP operating expense growth of just 9.6%, clearly demonstrating economies of scale and operating leverage. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Pony AI Inc. - Sponsored ADR? Here are five stocks we like better. Revenue surged 69% year over year to $36.2 million in Q2 2026, driven by a 691% increase in robotaxi revenue and an expanded fleet of roughly 2,000 vehicles. Pony AI expects to reach 3,500 vehicles by year-end and operate in more than 20 cities by the end of 2026. Pony AI secured commitments for more than 4,000 vehicles from Uber and other international partners, including over 2,000 robotaxis across five European cities. Its asset-light deployment model is designed to generate upfront vehicle-delivery revenue and recurring revenue-sharing or licensing fees as fleets scale. Losses narrowed relative to revenue growth: net loss fell 14.9% to $45.4 million, while operating margins improved year over year. The company held $1.39 billion in cash and investments at quarter-end and expects partner co-investment to help fund fleet expansion. 5 Reasons to Pony Up for Pony AI Stock—and 1 Reason to Wait Pony AI (NASDAQ:PONY) reported second-quarter 2026 revenue of $36.2 million, up 69% from $21.5 million a year earlier, as growth in its robotaxi business accelerated and its fleet expanded to approximately 2,000 vehicles. Chairman and CEO James Peng said robotaxi revenue rose 691% year over year to a record $12.1 million, while fare-charging revenue increased 849%. Robotruck revenue grew 40% to $13.3 million, and revenue from intelligent solutions rose 4% to $10.8 million, with the lower growth rate attributed to fluctuations in domain-controller deliveries. → AMG’s Alternatives Boom Powers Record Growth “Our robotaxi fleet expanded to 2,000 vehicles, putting us on track to deliver 3,500 vehicles by year-end,” Peng said. The company said it aims to operate in more than 20 cities by the end of 2026 and expects to exceed its prior outlook of robotaxi revenue reaching more than 3.5 times the 2025 level. Pony.ai said it has surpassed 1.5 million registered users in China and has expanded service coverage in Guangzhou and Shenzhen. In Guangzhou, the company added more than 300 square kilometers of operational coverage since the beginning of the year, spanning Haizhu, Tianhe, Huangpu and Panyu districts and serving an area with a population of more than 7 million. → Microsoft's Maia 300 Chip Targets NVIDIA's AI Dominance Peng said the company’s driverless fleet in Shenzhen has navigated high-demand holiday periods, rush-hour traffic and heavy rainstorms. Its network there now includes Bao’an International Airport, Shenzhen Bay Port and the Shekou Cruise Port. The company operates three Gen-7 robotaxi models in daily service: the GAC Aion V, BAIC Arcfox Alpha T5 and Toyota bZ4X. Peng said Pony.ai intends to continue adding vehicles in China’s Tier 1 cities while entering additional domestic markets, including Changsha, Hangzhou and other cities in the Greater Bay Area. → The Metals Company’s Big Bet Now Comes Down to a License Peng said larger fleets in Guangzhou and Shenzhen have reduced rider wait times and supported retention, which in turn has increased daily revenue per vehicle. He added that greater scale has helped the company spread operating costs across more vehicles and improve unit economics. Pony.ai said it has secured commitments for more than 4,000 vehicles from Uber and other overseas partners. Those commitments include more than 2,000 robotaxis across five European cities with Uber, according to management. The company also cited ongoing deployments with Bolt and Stellantis in Luxembourg and said its robotaxi service in Singapore is available to the public through ComfortDelGro’s Zig ride-hailing app. In Croatia, Pony.ai’s commercial service in Zagreb has served as a reference point for overseas partnership discussions, management said. Peng described the company’s joint-deployment model as an asset-light approach in which partners finance fleets and contribute local operating capabilities. Pony.ai provides its Gen-7 vehicles and autonomous-driving technology, while mobility platforms contribute rider demand and local operators manage fleet maintenance. Chief Financial Officer Leo Wang said the model may produce revenue-sharing income or technology-licensing fees over a robotaxi’s operating life. The company currently recognizes upfront vehicle-delivery revenue under the model, he said, and expects recurring revenue-sharing income to grow as operating fleets scale. In response to a question about Uber’s selection of Pony.ai for European expansion, Peng said Uber sought autonomous-driving partners with reliable technology at scale and attractive cost structures. He said Pony.ai’s operating experience in China’s Tier 1 cities and in Zagreb demonstrated its ability to operate in complex urban environments. Chief Technology Officer Tiancheng Lou said PonyWorld 2.0, the company’s AI-powered world-model and development framework, is intended to reduce the engineering effort needed to launch in new cities. The system is designed to identify local driving behaviors, generate targeted solutions and validate models for deployment, reducing reliance on engineers manually reviewing driving scenarios. Lou said the technology helped Pony.ai adapt to driving behavior in Zagreb, where drivers tend not to slow down near blind spots when they have the right of way. He said the company can now enter multiple cities with distinct driving conditions concurrently using fewer engineering resources. On operations, Lou said the company’s robotaxis can autonomously navigate depots, locate charging spaces and self-park. He said Pony.ai needs roughly three people for every 100 robotaxis to support daily operations, compared with the one-driver-per-vehicle structure of traditional taxis. The company also said it is advancing a new L4 autonomous light-truck initiative. Peng said the trucks share technology and operational infrastructure with Pony.ai’s robotaxi operations and customer relationships with its robotruck business. The company has partnered with CATL on vehicle development and said it has secured partnerships with SF Express and China Post Technology. GAAP operating expenses totaled $72.1 million in the second quarter, while non-GAAP operating expenses were $63 million, up 9.6% year over year. Wang said the expense increase was substantially below the company’s revenue growth rate. GAAP loss from operations was $65.7 million, up 7.3% from a year earlier. Non-GAAP loss from operations was $56.7 million, increasing by less than 5% year over year. Net loss narrowed 14.9% to $45.4 million. Operating margin improved to negative 181.5%, from negative 285.6% in the prior-year quarter. Net loss margin improved to negative 125.2%, from negative 248.3% a year earlier. As of June 30, Pony.ai held $1.39 billion in cash and cash equivalents, short-term investments, restricted cash and long-term wealth-management instruments, compared with $1.44 billion at the end of March. Net cash used in operating activities was $44 million in the quarter, while capital expenditures were $32.2 million, primarily for fleet vehicles, autonomous-driving kits and data-center capacity. Wang said the company expects partner co-investment under its joint-deployment model to support fleet expansion while maintaining capital discipline. Pony AI Inc develops and commercializes autonomous driving technologies for passenger mobility, freight transportation and other applications. Its proprietary Virtual Driver platform integrates software, hardware and services, while its PonyWorld world model supports the development and deployment of its autonomous driving systems. The company operates three primary business lines: Robotaxi services, Robotruck services and Intelligent Solutions, which include autonomous driving domain controllers and other technology products and services for automakers and industry customers. Founded in late 2016 in Fremont, California, by Jun “James” Peng and Tiancheng Lou, Pony.ai is headquartered in Guangzhou, China. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Pony AI Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Robotaxi revenues growth — Robotaxi revenues reached US$12.1 million, up 691.2% YoY in Q2, with fare-charging revenues rising by 849.3%. Rapid fleet scaling — Our Robotaxi fleet expanded to 1,975 vehicles1, as we continue scaling toward more than 3,500 vehicles by year end. Strengthening our presence in tier-one cities — PonyPilot registered users in China surpassed 1.5 million2, supported by increasing fleet density and broader operating coverage across key areas. Accelerating global expansion — We have secured multiple joint deployment model partners across overseas markets, including Uber for the contracted deployment of more than 2,000 Robotaxis in Europe, bringing the total number of vehicles under agreements in negotiation across international markets to over 4,000 Robotaxi vehicles. NEW YORK, Aug. 18, 2026 (GLOBE NEWSWIRE) -- Pony AI Inc. (“Pony.ai” or the “Company”) (NASDAQ: PONY; HKEX: 2026), a global leader in achieving large-scale mass production and commercialization of autonomous driving technology, today announced its unaudited financial results for the quarter and six months ended June 30, 2026. Dr. James Peng, Chairman and Chief Executive Officer of Pony.ai, commented, "In the second quarter, we advanced the scaling and commercialization of our Robotaxi business, delivering strong revenue growth, rapid fleet expansion and broader operating coverage across China and overseas markets. In China, solid operating execution and an improved user experience supported a broader range of high-frequency mobility needs. Building on our operating track record in China, we continued to expand our international footprint, working with partners including Uber. At the same time, we will continue to expand our vehicle deployment across China's tier-one cities to further strengthen our competitive position, while capturing incremental contributions from our growing overseas operations. We will continue to advance our full-year plans and are confident in our ability to exceed our full-year Robotaxi services revenues target, with further progress in overseas commercialization adding to our growth momentum.” Dr. Tiancheng Lou, Chief Technology Officer of Pony.ai, commented, "Our strategic early investments in full-stack L4 autonomous technology and advanced world models are now translating into greater efficiency across research and development, testing and fleet operations. PonyWorld 2.0 enables us to deploy Robotaxi fleets across multiple countries and cities simultaneously without a proportionate increase in engineering resources. At the same time, technology-driven improvements in fleet operations enable our teams to support larger fleets. Together, these improvements in research and development and operating efficiency enable faster deployment and scaling of our Robotaxi operations across new markets around the world.” Dr. Leo Wang, Chief Financial Officer of Pony.ai, commented, “Our second-quarter financial performance reflects our continued progress in commercialization and operating efficiency. Robotaxi revenues increased by 691.2% year-over-year to US$12.1 million, led by an 849.3% increase in fare-charging revenues. In addition, revenue contribution from the joint deployment model increased quarter-over-quarter, highlighting the model’s potential to support scalable growth with improved capital efficiency. Operating expenses increased at a much slower pace than revenues, reflecting improving operating leverage and a disciplined approach to capital allocation, with a continued focus on capital efficiency and returns. We remain focused on converting our technology and operating strengths into sustainable, high-quality financial growth.” Scaling Robotaxi Commercialization and Global Operations Delivering Strong Revenue Growth and Operating Momentum. 1) Fare-charging revenues increased by more than 800% year-over-year in the second quarter, with both Robotaxi services revenues and fare-charging revenues reaching record highs. 2) Our global Robotaxi fleet reached 1,975 vehicles1, representing steady progress toward our target of more than 3,500 vehicles by year-end. We expanded our operations in multiple cities, and all of our seventh-generation ("Gen-7") Robotaxis, including the Beijing Automotive Industry Corporation (“BAIC”), Guangzhou Automotive Corporation (“GAC”) and Toyota models, are in daily service. 3) PonyPilot registered users in China surpassed 1.5 million. Expanding High-Density Urban Coverage and High-Value Mobility Use Cases in China. 1) In Guangzhou, we extended our Robotaxi services into the city center, with operations spanning Haizhu District, Tianhe District, Huangpu District and Panyu District. Our operational area expanded by over 300 square kilometers2 from the beginning of this year, covering a population of over 7 million. 2) In Shenzhen, building on our existing coverage of core urban areas, we extended our service network to three major transportation hubs, including Bao'an International Airport, Shenzhen Bay Port, and Shekou Cruise Port. 3) Our Robotaxi fleet continued to operate reliably under a range of demanding real-world conditions, including elevated demand during holiday periods, peak-hour traffic and heavy rainstorms. Advancing Global Expansion through the Joint Deployment Model. 1) Our operating track record in China’s tier-one cities, highlighted by proven driving performance, 24/7 reliability, and positive unit economics ("UE"), provides international partners with confidence in adopting our joint deployment model. 2) We have secured multiple joint deployment model partners across overseas markets, including Uber for the contracted deployment of more than 2,000 Robotaxis in Europe, bringing the total number of vehicles under agreements in negotiation across international markets to over 4,000 Robotaxi vehicles. 3) In Luxembourg, we continued to advance our Robotaxi deployment in collaboration with Bolt and Stellantis. 4) In Singapore, our Robotaxi service became available to the general public through ComfortDelGro's Zig app. 5) Revenue contribution from the joint deployment model in China and overseas increased quarter-over-quarter in the second quarter of 2026. Enhancing R&D and Operating Efficiency with PonyWorld 2.0. 1) PonyWorld 2.0 continued to enhance our R&D efficiency, enabling faster deployment across new countries and cities, without a proportionate increase in engineering resources. 2) Technology-driven improvements in fleet operations continued to increase operational efficiency, enabling our teams to support larger Robotaxi fleets as deployment scales. 3) The combination of improved R&D and operating efficiency enables faster deployment and scaling of our Robotaxi operations across new markets. Advancing Robotruck Commercialization and Gen-4 Robotruck Deployment Delivering Revenue Growth and Advancing Gen-4 Robotruck Deployment. 1) We continued to deepen our collaboration with Sinotrans and Robotruck services revenues increased by 40.0% year-over-year in the second quarter of 2026. 2) Our fourth-generation ("Gen-4") Robotrucks entered into mass production on schedule, supporting broader commercial deployment. Expanding Commercial Deployment at Mawan Port. We partnered with China Merchants Port at Mawan Port in Shenzhen to commence commercial deployment of our Gen-4 driverless Robotrucks, where our Robotrucks operate in mixed-fleet port logistics operations alongside human-driven vehicles. 1 As of June 30, 2026.2 As of August 16, 2026. Unaudited Second Quarter Financial Results Revenues Total revenues were US$36.2 million (RMB245.8 million) in the second quarter of 2026, up 68.8% from US$21.5 million in the second quarter of 2025. The increase was mainly driven by strong growth in Robotaxi services revenues and Robotruck services revenues. Robotaxi services revenues were US$12.1 million (RMB81.9 million) in the second quarter of 2026, representing an increase of 691.2% from US$1.5 million in the second quarter of 2025. Specifically, fare-charging revenues grew by more than 800% year-over-year, primarily driven by the launch of the Gen-7 fleet and the expansion of our commercial Robotaxi operations. In addition, increased vehicle deployments under our joint deployment model also contributed to revenue growth in the quarter. Revenue contribution from the joint deployment model in China and overseas increased quarter-over-quarter in the second quarter of 2026. Robotruck services revenues were US$13.3 million (RMB90.4 million) in the second quarter of 2026, representing an increase of 40.0% from US$9.5 million in the second quarter of 2025. The increase was primarily attributable to growth in freight transportation services, supported by our collaboration with Sinotrans. Intelligent solutions revenues were US$10.8 million (RMB73.4 million) in the second quarter of 2026, broadly flat compared to US$10.4 million in the second quarter of 2025, with growth moderating mainly due to delivery fluctuations from autonomous domain controllers ("ADC"). For financial reporting purposes, our revenues are classified into service revenues and product revenues based on the nature of the underlying revenue streams. Service revenues were US$19.5 million (RMB132.1 million) in the second quarter of 2026, representing an increase of 71.9% from US$11.3 million in the second quarter of 2025, primarily attributable to Robotaxi services revenues and Robotruck transportation services revenues. Product revenues were US$16.8 million (RMB113.7 million) in the second quarter of 2026, representing an increase of 65.4% from US$10.1 million in the second quarter of 2025, primarily attributable to higher deliveries of Robotaxi vehicles under our joint deployment model. Cost of Revenues Total cost of revenues was US$29.9 million (RMB202.7 million) in the second quarter of 2026, representing an increase of 66.0% from US$18.0 million in the second quarter of 2025, broadly in line with revenue trends. Gross Profit and Gross Margin Gross profit was US$6.4 million (RMB43.1 million) in the second quarter of 2026, representing an increase of 83.4% from US$3.5 million in the second quarter of 2025. Gross margin was 17.5% in the second quarter of 2026, compared to 16.1% in the second quarter of 2025. The improvement was mainly driven by an improved revenue mix, with a higher contribution from Robotaxi services, including revenues generated under the joint deployment model, which generated relatively higher margins during the quarter. Operating Expenses Operating expenses were US$72.1 million (RMB489.2 million) in the second quarter of 2026, representing an increase of 11.4% from US$64.7 million in the second quarter of 2025. Non-GAAP3 operating expenses were US$63.0 million (RMB427.8 million) in the second quarter of 2026, representing an increase of 9.6% from US$57.5 million in the second quarter of 2025. The increase was primarily driven by ongoing business expansion and our efforts to enhance R&D capabilities, reflecting our continued investment to support commercialization. Research and development expenses were US$56.2 million (RMB381.6 million) in the second quarter of 2026, representing an increase of 14.7% from US$49.0 million in the second quarter of 2025. Non-GAAP research and development expenses were US$49.9 million (RMB338.4 million), representing an increase of 13.2% from US$44.1 million in the second quarter of 2025. The increase was primarily driven by i) higher personnel-related costs resulting from the expansion of our R&D team to enhance our capacity for large-scale deployment, ii) higher expenses related to development and testing, a portion of which represented non-recurring expenses incurred in connection with the development and engineering validation of the upgraded vehicle models. Selling, general and administrative expenses were US$15.9 million (RMB107.6 million) in the second quarter of 2026, broadly flat compared to US$15.7 million in the second quarter of 2025. Non-GAAP selling, general and administrative expenses were US$13.2 million (RMB89.3 million), broadly flat compared to US$13.5 million in the second quarter of 2025. Loss from Operations Loss from operations was US$65.7 million (RMB446.1 million) in the second quarter of 2026, representing an increase of 7.3% from US$61.3 million in the second quarter of 2025. Non-GAAP loss from operations was US$56.7 million (RMB384.7 million), representing an increase of 4.9% from US$54.1 million in the second quarter of 2025, primarily reflecting higher operating expenses discussed above, partially offset by improved gross profit. Operating loss margin was 181.5% in the second quarter of 2026, narrowing from 285.6% in the second quarter of 2025. Non-GAAP operating loss margin was 156.5% in the second quarter of 2026, narrowing from 252.0% in the second quarter of 2025. The year-over-year reductions in operating loss margin and non-GAAP operating loss margin primarily reflected improved operating leverage as our operations continued to scale. Other Income (Expenses), Net Other expenses, net was US$23.4 million (RMB158.9 million) in the second quarter of 2026, compared to other income, net of US$3.2 million in the second quarter of 2025, primarily attributable to a one-off impairment provision of US$25.0 million recognized on certain prepayments for long-term investments, which were determined to be unrecoverable following proactive strategic adjustments to the relevant business and the engagement of new strategic partners to better support the long-term development. Net Loss Net loss was US$45.4 million (RMB307.7 million) in the second quarter of 2026, representing a decrease of 14.9% from US$53.3 million in the second quarter of 2025, primarily attributable to certain non-operating items, including an increase in fair value of trading securities, partially offset by certain other expenses recognized during the quarter. Non-GAAP net loss was US$44.7 million (RMB303.4 million) in the second quarter of 2026, broadly flat compared to US$44.3 million in the second quarter of 2025, as the changes in fair value of trading securities, share based compensation expenses and the impairment loss discussed above were excluded from the Non-GAAP financial measures. Net loss margin was 125.2% in the second quarter of 2026, narrowing from 248.3% in the second quarter of 2025. Non-GAAP net loss margin was 123.5% in the second quarter of 2026, narrowing from 206.7% in the second quarter of 2025. The year-over-year reductions in both net loss margin and non-GAAP net loss margin primarily reflected improved operating leverage as our operations continued to scale. The reduction in net loss margin also reflected the impact of certain non-operating items. Net Loss Attributable to Pony AI Inc. Net loss attributable to Pony AI Inc. was US$59.8 million (RMB406.0million) in the second quarter of 2026, compared to US$53.1 million in the second quarter of 2025. The difference between total net loss and Net loss attributable to Pony AI Inc. is the US$14.5 million of net income allocated to non-controlling interests during the quarter. Basic and Diluted Net Loss per Ordinary Share Basic and diluted net loss per ordinary share was both US$0.14 (RMB0.95) in the second quarter of 2026, compared to US$0.14 in the second quarter of 2025. Non-GAAP basic and diluted net loss per ordinary share was both US$0.10 (RMB0.68) in the second quarter of 2026, compared to US$0.12 in the second quarter of 2025. Each American depositary share (“ADS”) represents one Class A ordinary share. Balance Sheet Cash and cash equivalents, short-term investments, restricted cash and long-term debt instruments for wealth management were US$1,390.5 million (RMB9,434.9 million) as of June 30, 2026, compared to the balance of US$1,435.5 million as of March 31, 2026. The decrease primarily reflected operating cash outflows and capital expenditures during the period. Capital expenditures were US$32.2 million (RMB218.2 million) in the second quarter of 2026, compared to US$9.6 million in the second quarter of 2025, primarily attributable to investments supporting the continued mass production and deployment of the Gen-7 Robotaxi fleet, as well as expenditures for data centers and servers. 3 Non-GAAP financial measures exclude share-based compensation expenses, changes in fair value of trading securities and a one-off impairment loss on prepayment for long-term investments as discussed under "Other Income (expenses), Net" section above. The exclusion of the impairment loss on prepayment for long-term investments is a new adjustment introduced in the second quarter of 2026. No comparable loss was recognized in the prior periods presented, and prior period non-GAAP measures are therefore unaffected by this change. Such adjustment has no impact on income tax. For further details, see the “Unaudited Reconciliation of U.S. GAAP and Non-GAAP Results” set forth at the end of this earnings release. Conference Call Pony.ai will hold a conference call at 8:00 AM U.S. Eastern Time on Tuesday, August 18, 2026 (8:00 PM Beijing/Hong Kong Time on the same day) to discuss financial results and answer questions from investors and analysts. For participants who wish to join the call by phone, please complete the online registration process using the link provided below prior to the scheduled call start time. Upon registration, participants will receive a confirmation email containing dial-in numbers, passcode, and a unique access PIN. Participant Online Registration: https://dpregister.com/sreg/10210583/1047a46a6e9 A replay of the conference call will be accessible through August 25, 2026, by dialing the following numbers: Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at https://ir.pony.ai. Exchange Rate This press release contains translations of certain RMB amounts into U.S. dollars ("US$" or "USD") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB6.7851 to US$1.00, the noon buying rate in effect on June 30, 2026, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial statements contained in this earnings release. Non-GAAP Financial Measures The Company uses non-GAAP financial measures, such as non-GAAP research and development expenses, non-GAAP selling, general and administrative expenses, non-GAAP operating expenses, non-GAAP loss from operations, non-GAAP net loss, non-GAAP net loss attributable to Pony AI Inc., non-GAAP basic and diluted net loss per ordinary share, and non-GAAP free cash flows, in evaluating its operating results and for financial and operational decision-making purposes. By excluding the impact of share-based compensation expenses, changes in fair value of trading securities and impairment loss on prepayment for long-term investments, the Company believes that the non-GAAP financial measures help identify underlying trends in its business and enhance the overall understanding of the Company’s past performance and future prospects. The Company also believes that the non-GAAP financial measures allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making. The non-GAAP financial measures are not presented in accordance with U.S. GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. The non-GAAP financial measures have limitations as analytical tools and when assessing the Company’s operating performance, investors should not consider them in isolation, or as a substitute for financial information prepared in accordance with U.S. GAAP. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company’s performance. For more information on the non-GAAP financial measures, please see the table captioned “Unaudited Reconciliation of U.S. GAAP and Non-GAAP Results” set forth at the end of this earnings release. About Pony AI Inc. Pony AI Inc. (NASDAQ: PONY; HKEX: 2026), founded in 2016, is a global leader in achieving large-scale mass production and commercialization of autonomous driving technology. Pony.ai is committed to delivering safe, advanced, and reliable autonomous driving technology and solutions. At the heart of Pony.ai’s strategy is its proprietary world model PonyWorld and its Virtual Driver technology. Together, they power the development and scaling of its Robotaxi services, Robotruck services, and Intelligent solutions businesses. With operations spanning China, Europe, East Asia, the Middle East, and beyond, Pony.ai stands among a select few companies globally to achieve fully driverless commercial operations. Pony.ai has forged deep and extensive partnerships across the autonomous driving value chain, enabling it to accelerate the commercialization of autonomous driving in line with its ultimate vision: “Autonomous Mobility Everywhere.” For more information, please visit: https://ir.pony.ai. Safe Harbor Statement This press release contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to," and similar statements. Statements that are not historical facts, including statements about Pony.ai’s beliefs, plans, and expectations, such as the expectation of exceeding annual robotaxi services revenue target, expected Robotaxi year-end fleet size and expected city deployment, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in Pony.ai’s filings with the SEC and the Hong Kong Stock Exchange. All information provided in this press release is as of the date of this press release, and Pony.ai does not undertake any obligation to update any forward-looking statement, except as required under applicable law. For investor inquiries, please contact: Pony.aiInvestor RelationsEmail: [email protected] 4 Such adjustments have no impact on income tax for the three-month and six-month periods ended June 30, 2025 and 2026, as no deferred tax has been recognized in respect of the temporary differences arising from these Non-GAAP adjustments.5 Free Cash Flows are a non-GAAP measure, commonly defined as cash flows from operating activities as presented in the statement of cash flows, less capital expenditures. However, in the context of the Company, operating cash flows are a cash out (i.e., a cash outflow). Free Cash Flows represent the total of operating cash outflows plus capital expenditures. This metric reflects the Company's important cash outflows, as it combines the funds required to maintain operations and invest in growth.

Interested in Stellantis N.V.? Here are five stocks we like better. Stellantis reported a stronger second quarter: Net revenue increased 13% year over year to €43.5 billion, while shipments rose 10% to 1.6 million units. Adjusted operating income climbed to €773 million, and industrial free cash flow reached positive €1 billion. Cost-cutting and operational improvements supported profitability. Industrial costs fell by more than €1.9 billion, while the Value Creation Program is targeting €6 billion in annual run-rate savings by 2028 and €2.4 billion in adjusted operating income benefits in 2027. The company reaffirmed its full-year outlook but expects a back-loaded recovery. Third-quarter results may be pressured by plant shutdowns, lower volumes and roughly €1 billion in second-half headwinds, while fourth-quarter performance should benefit from new launches and accelerated cost initiatives. 5 Reasons to Pony Up for Pony AI Stock—and 1 Reason to Wait Stellantis (NYSE:STLA) reported improved second-quarter 2026 financial results, citing higher shipments, stronger production efficiency and cost reductions, while reaffirming its full-year outlook and expectation for positive industrial free cash flow in 2027. Net revenues rose 13% year over year to €43.5 billion as consolidated shipments increased 10% to 1.6 million units. Adjusted operating income, or AOI, reached €773 million, up €560 million from the prior-year quarter, while the AOI margin improved 120 basis points to 1.8%. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now Qualcomm's TikTok AI Chip Deal Rewrites the Rules Industrial free cash flow was positive €1 billion in the quarter, improving by €1 billion from a year earlier. Chief Financial Officer João Laranjo said the improvement reflected higher AOI, favorable seasonal working-capital dynamics tied to higher second-quarter volume and a lower run rate of capital expenditures and research-and-development spending. Chief Executive Officer Antonio Filosa said the company’s operational efforts improved manufacturing efficiency by 870 basis points in North America and 170 basis points in Europe from a year earlier. Three-month-in-service quality improved 38% in North America and 24% in Europe, he said. → Microsoft Just Flipped the AI Spending Narrative Overnight Detroit's Great Divide: Two Titans, Two Paths to Profit Industrial costs improved by more than €1.9 billion year over year. Laranjo attributed the change to manufacturing efficiencies, purchasing savings, lower regulatory expenses in North America and the absence of prior-year European recall-campaign warranty costs. These gains more than offset raw-material and tariff headwinds, according to the company. The company’s Value Creation Program, or VCP, is intended to generate €6 billion in annual run-rate cost reductions by 2028. Filosa said Stellantis expects to have implemented 40% of identified initiatives by the end of 2026, supporting an expected €2.4 billion of AOI benefits in 2027, plus partial benefits from initiatives implemented during that year. → Carrier Earnings Could Send the Stock to a New All-Time High In response to analyst questions, management said material-cost savings and quality improvements are expected to be the largest contributors to margin improvement in North America. Filosa described VCP initiatives spanning direct materials, plant transformation costs, logistics and distribution, including supplier-routing optimization, higher utilization of logistics assets and warehouse consolidation. North America posted AOI of €284 million and an AOI margin of 1.6%, representing a €724 million year-over-year improvement. Shipments increased 38%, aided by new-product launches and production built ahead of planned summer shutdowns. North American sales rose 6% year over year, marking a fourth consecutive quarter of gains, while regional market share increased 40 basis points, including a 50-basis-point increase in the U.S. Ram sales rose 12%, Chrysler sales increased 54% following the launch of the new Pacifica, and Jeep Grand Wagoneer sales also advanced. Filosa said the Ram 1500 benefited from demand following the return of the HEMI V8 engine. The company is now shipping the Ram 1500 TRX SRT, and said the Ram Rumble Bee is scheduled to arrive later in the year. Stellantis said U.S. dealer inventory reached 390,000 units in June, up about 70,000 units from January. Filosa said approximately 65,000 of that increase was associated with new products and preparations for summer plant shutdowns. The company expects inventory to decline to around 365,000 units by the end of July and said that level could support planned sales growth and upcoming launches. In Europe, AOI was negative €94 million, though it improved €265 million from a year earlier. The region continued to face pricing pressure, which partially offset improved manufacturing and purchasing costs. Stellantis brand sales in Europe increased 3%, while sales including Leapmotor rose 7%. Battery-electric vehicle sales grew 20%, or 61% including Leapmotor. Laranjo said Leapmotor vehicles are profitable but carry lower margins than Stellantis’ European average because of their powertrain mix, creating a negative mix effect. Still, the company expects an expanding product lineup to increase Leapmotor’s contribution over time. Leapmotor’s European sales increased sixfold year over year in the quarter, according to Filosa. South America generated AOI of €402 million, with Stellantis maintaining more than 26% market share in both Brazil and Argentina. Middle East and Africa delivered AOI of €329 million despite an 8% decline in industry volumes, while Asia Pacific AOI rose 35% to €27 million. Management said second-half performance is expected to be weighted toward the fourth quarter. The third quarter is expected to face pressure from summer shutdowns and continued raw-material inflation, while the fourth quarter should benefit from higher volume and a stronger ramp of VCP initiatives. The company expects second-half headwinds of roughly €1 billion from raw materials and the non-repeat of an IEEPA tariff refund recognized in the first quarter. It expects lower volumes in the second half as inventory is reduced, but sees positive mix from lower rental-channel sales and new-product launches. Management also said pricing should be constructive in North America and stable elsewhere. Stellantis now expects net tariff expenses of €1 billion to €1.2 billion in 2026, modestly better than the €1.3 billion previously communicated. It maintained its expectation that capital expenditures and R&D spending will equal 6.5% to 7% of net revenues for the year, with spending increasing in the second half. Filosa said high-volume North American products currently in development are expected to reach the market beginning at the end of 2027 and into 2028. He added that the company plans to move Jeep Cherokee production to Belvidere, though he did not provide a production start date. Stellantis N.V. is a global automotive manufacturer formed through the merger of Fiat Chrysler Automobiles (FCA) and Groupe PSA, a transaction completed in January 2021. The company designs, manufactures and sells a broad portfolio of passenger cars, light commercial vehicles and related powertrains under a large number of well-known brands, including (but not limited to) Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, Fiat, Jeep, Maserati, Opel, Peugeot, Ram and Vauxhall. Stellantis also provides parts, accessories, service operations and branded aftersales support through legacy networks such as Mopar and regional dealer ecosystems. In addition to vehicle manufacturing, Stellantis operates mobility- and software-related businesses and financial services. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Stellantis Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

NEW YORK, July 17, 2026 (GLOBE NEWSWIRE) -- Pony AI Inc. (“Pony.ai” or the “Company”) (NASDAQ: PONY; HKEX: 2026), a global leader in achieving large-scale mass production and commercialization of autonomous driving technology, today announced that it will report its unaudited financial results for the second quarter 2026 and for the six months ended June 30, 2026 before the U.S. market opens on Tuesday, August 18, 2026. The Company’s management will hold an earnings conference call on Tuesday, August 18, 2026, at 8:00 A.M. U.S. Eastern Time or 8:00 P.M. Beijing/Hong Kong Time on the same day. For participants who wish to join the call by phone, please complete the online registration process using the link provided below prior to the scheduled call start time. Upon registration, participants will receive a confirmation email containing dial-in numbers, passcode, and a unique access PIN. Participant Online Registration: https://dpregister.com/sreg/10210583/1047a46a6e9 A replay of the conference call will be accessible through August 25, 2026, by dialing the following numbers: United States: 1-855-669-9658International: 1-412-317-0088Replay Access Code: 1628020 A live and archived webcast of the conference call will also be available at the Company’s investor relations website at https://ir.pony.ai. About Pony AI Inc. Pony AI Inc. (NASDAQ: PONY; HKEX: 2026), founded in 2016, is a global leader in achieving large-scale mass production and commercialization of autonomous driving technology. Pony.ai is committed to delivering safe, advanced, and reliable autonomous driving technology and solutions. At the heart of Pony.ai’s strategy is its proprietary world model PonyWorld and its Virtual Driver technology. Together, they power the development and scaling of its Robotaxi services, Robotruck services, and Intelligent solutions businesses. With operations spanning China, Europe, East Asia, the Middle East, and beyond, Pony.ai stands among a select few companies globally to achieve fully driverless commercial operations. Pony.ai has forged deep and extensive partnerships across the autonomous driving value chain, enabling it to accelerate the commercialization of autonomous driving in line with its ultimate vision: “Autonomous Mobility Everywhere.” For more information, please visit: https://ir.pony.ai. For investor inquiries, please contact: Pony.aiInvestor RelationsEmail: [email protected]

GUANGZHOU, China, June 8, 2026 /PRNewswire/ -- Pony AI Inc. ("Pony.ai" or the "Company") (NASDAQ: PONY; HKEX: 2026), a global leader in achieving large-scale mass production and commercialization of autonomous driving technology, today announced that each of the proposed resolutions submitted for shareholders' approval (the "Proposed Resolutions") as set forth in the notice of the annual general meeting dated April 22, 2026, Hong Kong time (the "AGM Notice"), has been adopted at the annual general meeting held in Guangzhou, China today. After the adoption of the Proposed Resolutions, all corporate authorizations and actions contemplated thereunder are approved, including, among other things, that (i) Mr. Fei Zhang and Mr. Takeo Hamada are re-elected as non-executive directors of the Company, and (ii) the directors of the Company are granted a general mandate to issue, allot, and deal with additional Class A ordinary shares and/or American depositary shares ("ADSs") of the Company and a general mandate to repurchase the Company's own shares and/or ADSs, respectively, on the terms and in the periods as set out in the AGM Notice. About Pony AI Inc. Pony AI Inc. (NASDAQ: PONY; HKEX: 2026), founded in 2016, is a global leader in achieving large-scale mass production and commercialization of autonomous driving technology. Pony.ai is committed to delivering safe, advanced, and reliable autonomous driving technology and solutions. At the heart of Pony.ai's strategy is its proprietary world model PonyWorld and its Virtual Driver technology. Together, they power the development and scaling of its Robotaxi services, Robotruck services, and Intelligent solutions businesses. With operations spanning China, Europe, East Asia, the Middle East, and beyond, Pony.ai stands among a select few companies globally to achieve fully driverless commercial operations. Pony.ai has forged deep and extensive partnerships across the autonomous driving value chain, enabling it to accelerate the commercialization of autonomous driving in line with its ultimate vision: "Autonomous Mobility Everywhere." For more information, please visit: https://ir.pony.ai. Safe Harbor Statement This press release contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to," and similar statements. Statements that are not historical facts, including statements about Pony.ai's beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in Pony.ai's filings with the SEC and the Hong Kong Stock Exchange. All information provided in this press release is as of the date of this press release, and Pony.ai does not undertake any obligation to update any forward-looking statement, except as required under applicable law. View original content:https://www.prnewswire.com/news-releases/pony-ai-inc-announces-results-of-the-annual-general-meeting-302793852.html

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Pony AI (PONY) is back in focus after its Class A shares joined the Shanghai Hong Kong Stock Connect program, opening the door to Mainland investor trading just as fresh first quarter results landed. See our latest analysis for Pony AI. The recent Stock Connect inclusion and strong first quarter revenue headlines arrive after a sharp pullback, with the share price at US$8.62 and the year to date share price return down 46.36%, while the 1 year total shareholder return is down 38.12%. This suggests recent enthusiasm is being tested even as interest around robotaxis and logistics partnerships grows. If this kind of volatility has you looking across the sector, it could be a time to scan other AI plays and see how they compare with Pony AI using 63 profitable AI stocks that aren't just burning cash With Q1 revenue at US$34.25 million, a reported net loss of US$50.41 million, and the stock trading at US$8.62, investors are now asking: Is Pony AI undervalued, or is the market already pricing in future growth? At a last close of $8.62 versus a most followed fair value of $15.00, the current price sits well below what this narrative models out. Read the complete narrative. Want to see what kind of revenue build, margin shift, and future earnings multiple would need to line up for that $15.00 fair value to hold? The narrative leans on fast top line expansion, a sharp swing in profitability, and a premium valuation that usually belongs to mature software leaders. Result: Fair Value of $15.00 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, that story can change quickly if fleet expansion delivers stronger ride volumes than expected, or if citywide breakeven in Guangzhou proves more repeatable across new markets. Find out about the key risks to this Pony AI narrative. That 42.5% undervaluation story clashes with how the market is pricing Pony AI on sales today. The stock trades on a P/S of 33.9x, versus a fair ratio of 8.9x, the US Software industry at 3.6x and peers at 3x, which points to meaningful valuation risk if expectations reset. For a stock that is currently loss making and not forecast to be profitable in the next 3 years, how comfortable are you paying a P/S that far above both the fair ratio and sector norms? See what the numbers say about this price — find out in our valuation breakdown. If this mix of optimism and concern around Pony AI has you on the fence, take a moment to review the underlying data and form your own view. You can start with 2 key rewards and 2 important warning signs. If Pony AI has sharpened your thinking, do not stop here. Use screeners to spot other opportunities that fit your risk level and income goals. Tap into potential mispricings by reviewing companies highlighted in the 49 high quality undervalued stocks before the market catches up. Strengthen the defensive side of your portfolio by using the solid balance sheet and fundamentals stocks screener (46 results) to focus on financial resilience and fundamentals. Get ahead of the crowd by scanning the screener containing 22 high quality undiscovered gems that combine quality metrics with relatively low market attention. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include PONY. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Pony AI Inc. has reported first-quarter 2026 results, with revenue rising to US$34.25 million from US$13.98 million a year earlier, while net loss widened to US$50.41 million from US$42.99 million and loss per share stayed unchanged at US$0.12. The company’s Class A ordinary shares were also added to the Shanghai-Hong Kong Stock Connect program on June 4, 2026, opening direct access for Mainland Chinese investors and potentially reshaping its access to capital and liquidity profile. Next, we’ll explore how inclusion in the Shanghai-Hong Kong Stock Connect program may influence Pony AI’s broader investment narrative. AI is about to change healthcare. These 40 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. To own Pony AI today, you need to believe that its autonomous driving platform can eventually justify heavy ongoing investment and current valuation, despite a record of widening losses and a long path to profitability. The first quarter showed revenue climbing to US$34.25 million while net loss expanded to US$50.41 million, underlining how much capital still needs to go into scaling Robotaxi fleets, software, and partnerships. Near term, the key catalysts remain execution on commercial deployments, cost-down targets for its Gen-7 Robotaxis, and conversion of global tie-ups with players like Uber, BAIC, and Toyota into more recurring revenue. Inclusion in the Shanghai Hong Kong Stock Connect program slots into this picture as a potentially meaningful liquidity boost, but it does not by itself resolve concerns about high price to sales multiples, shareholder dilution, or ongoing cash burn. However, investors also need to factor in how ongoing losses and past dilution could affect future returns. Despite retreating, Pony AI's shares might still be trading above their fair value and there could be some more downside. Discover how much. Eight Simply Wall St Community fair value estimates span roughly US$8.98 to US$23.67, showing how far apart individual views on Pony AI can be. When you set that against widening losses and a long profitability timeline, it underlines why many investors focus closely on execution risks around commercialization and capital needs. Explore 8 other fair value estimates on Pony AI - why the stock might be worth over 2x more than the current price! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Pony AI research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision. Our free Pony AI research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Pony AI's overall financial health at a glance. Markets shift fast. These stocks won't stay hidden for long. Get the list while it matters: We've uncovered the 10 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. Capitalize on the AI infrastructure supercycle with our selection of the 48 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. Uncover the next big thing with 24 elite penny stocks that balance risk and reward. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include PONY. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Tesla is one of the largest companies in the world, with a market cap of $1.6 trillion. Its business centers around electric vehicles (EVs), and investors are particularly hopeful about its future robotaxi business. Tesla is in the early innings of growing that area, but that's often a key reason growth investors point to as to why the stock can make for a promising long-term investment. But what if I told you there was a much smaller company than Tesla, which is already generating millions in revenue from robotaxis? Meet Pony AI (NASDAQ: PONY), which recently posted some exciting earnings numbers, with its robotaxi business showing some promising growth. Let's take a closer look at the stock to see if it may be a better option for investors than investing in Tesla. On Tuesday, Pony AI reported its first-quarter numbers for 2026, for the period ending March 31. Revenue totaling $34.3 million was up 145% from a year ago. The company operates robotaxis in China, and revenue from that business grew by 395% to $8.6 million. It also generates revenue from its robotruck business, which involves autonomous freight vehicles, and from intelligent solutions. Pony AI's fleet of robotaxis has grown from 3,000 units to more than 3,500. And while its key market is China, the company has begun growing internationally. It has initiated deployment in Croatia, and says it has a presence in nine countries. It plans to be in over 20 cities by the end of the year. As the company has grown, however, its losses have also expanded. Pony AI's net loss totaled $53.5 million this past quarter, up from a loss of $37.4 million in the prior-year period. Tesla is a much bigger name in the EV and robotaxi markets, but Pony AI may prove to be the better long-term investment. Its market cap is around just $4 billion. It has been struggling over the past 12 months, declining by 46%, but with some promising growth opportunities, it may be an underrated buy. There is risk with the stock given its lack of profitability, but that's not terribly surprising given its early growth stage. Geopolitical concerns, specifically worrisome U.S.-China trade relations, may be weighing on the stock as well. Pony AI has plenty of room to rise, given the bearishness it has endured over the past year. With encouraging prospects, it could be a good growth stock to consider if you're comfortable with the risk and willing to hold for the long term. Before you buy stock in Pony Ai, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Pony Ai wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $472,852!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,317,207!* Now, it’s worth noting Stock Advisor’s total average return is 984% — a market-crushing outperformance compared to 210% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 27, 2026. David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy. Meet the Stock That Is a Fraction of Tesla's Size and That Generated Nearly 400% Revenue Growth From Robotaxis Last Quarter was originally published by The Motley Fool