Pony AI Stock Crashes: Why Investors Panicked and Pulled the Plug

Autonomous dreams hit a pothole as Pony AI shares nosedive.

The reckoning: Once a darling of the self-driving revolution, Pony AI's stock got sideswiped by reality—investors bailed faster than a malfunctioning Tesla on autopilot.

Behind the crash: No concrete numbers were spilled, but the market's verdict was brutal. When algorithms lose faith in your algorithm play, you know you're in trouble.

Silver lining? Maybe this clears the road for the next overhyped AI moonshot. Wall Street's memory lasts about as long as a crypto bull run.

Big boost in the take for licensing and applications

Reporting in both Chinese yuan and U.S. dollars, the China-based Pony AI revealed that its revenue leaped 76% year over year to just under $21.5 million. Much of that increase came from a more than tenfold rise in licensing and applications revenue. This came in at $10.4 million against slightly over $1 million in the same quarter of 2024.

Image source: Getty Images.

Going in the opposite direction was net loss, which widened on both a GAAP (generally accepted accounting principles) and non-GAAP (adjusted) basis. Under the latter standard, it was slightly over $46 million ($0.13) per share, comparing unfavorably to the year-ago deficit of $30 million.

On average, analysts tracking Pony AI were modeling $16 million for revenue. Their consensus estimate for profitability wasn't immediately apparent.

The 1,000-car goal

In terms of operations, Pony AI said that since the launch of mass production of robotaxis two months ago, more than 200 of Guangzhou Auto Group's and Beijing Automotive Industry Corporation's Gen-7 models -- packed with Pony AI technology -- have been produced. This puts the manufacturers on track to meet, although not exceed, its target of 1,000 by the end of this year.