Pony AI Shares Fall as Chinese Autonomous Startup Reports 72% Loss Rise

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Shares of Pony AI declined after the Chinese autonomous vehicle technology startup reported a significant increase in net losses during the second quarter of this year, primarily attributed to a surge in operating expenses.

The company closed yesterday’s trading session down 3.5%, at $14.36 per share, on the NASDAQ.

For the three months ending June 30th, the Guangzhou-based firm announced a net loss of $53.3 million. Revenue experienced a remarkable 76% increase, reaching $21.5 million, boosted by higher income from Robotaxi operations as well as licensing and application sales.

Operating expenses jumped by 75%, totaling $64.7 million, largely due to intensified investments in mass production and the development of its latest Gen-7 Robotaxi. Research and development costs grew 69% to $49 million, mainly driven by efforts to scale up the Gen-7’s manufacturing, along with increased employee compensation to enhance technological capacity.

According to the company’s leadership, this quarter marked an important milestone toward large-scale production and deployment, emphasizing their strengthened position in the Robotaxi industry. Since scaling to mass production two months ago, more than 2,001 Gen-7 Robotaxi units have been produced, putting the company on track to meet its goal of 1,000 vehicles by year’s end. The company’s Robotaxi revenue more than doubled, with fare income surging over 300% year-over-year.

Revenue from autonomous taxis increased 158% to $1.5 million, while income from licensing and applications skyrocketed 902%, reaching $10.4 million. This growth was driven by higher orders and deliveries of self-driving domain controllers, supported by rising demand from new and existing clients in the delivery segment.

Gross profit for the quarter was $3.5 million, recovering from a gross loss of $41,000 the previous year. The gross margin improved significantly, rising to 16.1% from -0.3%.

The company’s leadership highlighted progress toward achieving positive unit economics, citing key improvements in costs related to remote assistance and vehicle insurance. These advancements are supported by rapid scaling and operational breakthroughs across China’s top-tier cities, along with expansion into Dubai, South Korea, and Luxembourg.

Looking ahead, the focus remains on driving toward profitability amid ongoing mass production efforts and accelerating multi-year growth.