Why Pony AI Stock Keeps Racing Higher

Yes, you work that right: Pony doubled, and past went up adjacent more.

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So acold this week, the biggest small Chinese tiny headdress you've ne'er heard of (before this week) has announced it's producing 3 caller robotaxi models successful practice with Beijing Automotive Group, Guangzhou Automobile Group, and Toyota Motor (NYSE: TM), respectively, and that it has lined up section spouse Hesai Group (NASDAQ: HSAI) to proviso it with AT128 lidar sensors for its robotaxis.

Today, Pony added that it's partnering with different section company, Tencent Holdings (OTC: TCEHY), to further "advance autonomous driving exertion and robotaxi commercialized deployment."

This tie-up volition brace Pony's "cutting-edge" autonomous driving strategy with tech products from Tencent, specifically the latter's Weixin (or "WeChat") societal media, messaging, and outgo app, Tencent Maps, and its "robust unreality computing, large information and AI infrastructure," each of which dependable to maine similar logical add-ons to an electric-car-slash-robotaxi service.

Tencent mightiness bash good to ante up a spot of cash. Tencent's tech contributions are each great, but there's nary notation of fiscal enactment successful the property release, and Pony is still burning cash, and losing $274 cardinal a year.

While the institution has sizeable currency reserves, a small much could spell a agelong mode to ensuring Pony banal doesn't spell bankrupt earlier 2029, the archetypal twelvemonth it's expected to beryllium profitable, according to analysts polled by S&P Global Market Intelligence. Meanwhile, until the fiscal representation firms up, I indispensable inactive see Pony a speculative, momentum-driven stock.

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