Shares of the Chinese autonomous driving company Pony AI (PONY 16.02%) traded roughly 12% higher as of 10:21 a.m. ET today. The company announced that it has entered a memorandum of understanding with Dubai’s Roads and Transport Authority (RTA) to use the company’s self-driving vehicles in the region.
Another partnership
Since Pony AI debuted its seventh-generation autonomous driving system at an auto show in Shanghai earlier this year, investor interest has surged, and the company has seen a flurry of good news. Pony AI announced a partnership with Uber earlier this year and now one with Dubai, which has shown significant interest in full self-driving vehicles.
Image source: Getty Images.
RTA CEO Ahmed Bahrozyan said in a statement:
This partnership is integral to our goal of transforming 25% of all journeys in the city into autonomous trips by 2030, reinforcing Dubai’s position as a global leader in autonomous mobility and innovation. We are excited to work with Pony.ai, a pioneer in autonomous driving technology, to further enhance the integration of smart transport solutions in Dubai.
The partnership aims to start supervised trials this year and then move to fully driverless by 2026. Pony AI is planning to start producing its new robotaxis at scale in the back half of 2025, which will lay the groundwork for global expansion. Pony AI also said its fleet will encompass thousands of vehicles within the next two years.
Progressing nicely
Investors seem to be quite impressed with the autonomous technology, which Pony AI can now make at a much lower cost than before. The new partnerships are a testament to the company’s success.
However, with Pony AI trading at a roughly $6.9 billion market cap and still operating at a loss, it’s probably too early to go all in just yet. Investors can begin accumulating shares, but should keep positions smaller for now.
Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Uber Technologies. The Motley Fool has a disclosure policy.
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