Deutsche Bank predicts 40% surge for Pony AI's robotaxis in 2025

In China, Pony AI, an autonomous driving firm, launched its stock on Nasdaq on November 27, 2024, after a successful initial public offering. The company has since seen its stock rise minimally by 6%. On January 14, 2025, Deutsche Bank analyst Bin Wang highlighted Pony AI's significant potential for growth in the robotaxi market, offering a buy rating and a price target suggesting an approximately 33% increase. Pony AI specializes in completely driverless robotaxi services across major Chinese cities and is poised for growth in this rapidly evolving industry. The report predicts exponential demand for robotaxis in China, aligning with the nation's swift expansion in autonomous mobility services. Wang noted that Pony AI's core technology hinges on proprietary AI-driven software, giving it a competitive edge in the industry. With the support of China's advancements in robotics and favorable government policies expected to bolster robotaxi operations, Pony AI's market presence appears promising. The analyst forecasts that revenues from robotaxi services will grow at a remarkable compound annual growth rate of 171%, escalating from $8.6 million in 2024 to an astounding $3.37 billion by 2030. Eleven billion dollars are slated to be generated by Pony AI's robotaxi and robotruck services, contributing significantly to the company’s overall revenue. By the end of the decade, it is anticipated that these sectors will account for about 97% of Pony AI’s total revenue. The projected increase in the share of revenue from robotaxi services, reaching around 93% of total revenues, underscores the strategic importance of this segment to Pony AI's business model. The Chinese market’s rapid adaptation to robotaxi services is partly due to the integration of these options into popular ride-hailing apps, contributing to public acceptance and usage. Furthermore, as urbanization continues and the population seeks efficient transportation alternatives, the demand for autonomous ride services like those provided by Pony AI is set to jump substantially, influenced by government support and policy promotions of robotaxi services. Deutsche Bank's optimistic forecast implies confidence in the long-term viability and scalability of Pony AI, indicating a pivotal moment for the self-driving vehicle sector in China.