Pony AI (NASDAQ:PONY) shares advanced on Friday after the autonomous driving startup announced a strategic partnership with Mowasalat, Qatar’s state-owned transport provider, to deploy self-driving vehicles across the Gulf nation.
The agreement expands Pony AI’s footprint in the Middle East, following earlier operations in Dubai, and supports its broader goal of achieving “autonomous mobility everywhere.”
The company has already begun testing robotaxis in Doha with safety operators onboard. The trials are designed to fine-tune Pony AI’s systems for Qatar’s infrastructure, climate, and traffic conditions.
Also Read: Pony AI’s Robotaxi Expansion Accelerates Multi-Year Growth Trajectory, CEO Says
Mowasalat, owned by the Qatar Investment Authority and overseen by the Ministry of Transport, operates the country’s largest transport fleet and plays a central role in advancing the government’s National Vision 2030 strategy.
Its partnership with Pony AI underscores Qatar’s ambition to integrate cutting-edge mobility solutions into its infrastructure plans.
Despite Friday’s gain, Pony AI shares remain down more than 5% this year. Still, investor sentiment has strengthened as the company accelerates its fleet expansion in China’s biggest cities while cutting production costs.
In the second quarter, Pony AI reported a 158% year-over-year surge in robotaxi revenue, driven by its seventh-generation vehicles, which are 70% cheaper to manufacture and significantly more cost-efficient to operate.
Chief Executive James Peng said the company expects to have 1,000 vehicles on the road by year-end, a milestone he believes will secure unit-level profitability.
Institutional investors have taken notice. ARK Invest, led by Cathie Wood, disclosed a $12.9 million stake in Pony AI this month, the fund’s first direct investment in a Chinese Level 4 autonomous driving firm.
The company also drew 14 global investors during the second quarter, including Baillie Gifford and Nikko Asset Management.
Analysts remain optimistic about the long-term trajectory. Goldman Sachs recently reiterated a Buy rating and issued a $24.50 price forecast, implying more than 50% upside from mid-August levels.
UBS has projected that China’s robotaxi market could reach $183 billion by the late 2030s, with nearly $400 billion in additional opportunities internationally outside the U.S.
Pony AI appears well-positioned to capture a meaningful share, thanks to exclusive permits to operate fully driverless services in Beijing, Shanghai, Guangzhou, and Shenzhen, along with regulatory approval to collect fares in parts of Shanghai.
Price Action: At last check Friday, PONY shares were trading higher by 3.96% to $14.16.
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