In This Article:
Key Points
-
Pony AI will partner with Uber to bring robotaxis to the Middle East.
-
This is the second key partnership Pony AI has announced with major companies in just a few weeks.
-
Pony AI is up against stiff competition from Waymo, Tesla, and others.
Shares of Pony AI (NASDAQ: PONY) are flying higher on Tuesday. The stock has gained 34.3% as of 12:12 p.m. ET and was up by as much as 37% earlier in the day. The move comes as the S&P 500 and Nasdaq Composite indexes slipped 0.5% and 0.6%, respectively.
Pony, a Chinese autonomous vehicle company, will partner with Uber Technologies to deploy its technology in Middle East markets later this year.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Pony will power self-driving cars globally
Uber announced Tuesday that it will partner with Pony AI to begin offering autonomous robotaxi services in key markets in the Middle East before expanding to additional global markets in the future. The rollout will begin with "safety operators" in the driver's seats until the human operators are phased out.
Another step forward for Pony
The collaboration is a key partnership that helps Pony AI in its quest to expand globally. Currently operating in select Chinese cities, the company is already exploring expanding to South Korea, Luxembourg, and Hong Kong.
The company had announced another partnership just weeks ago with the Chinese tech giant Tencent, boosting its profile. This latest partnership further validates the company's technology outside the Chinese market.
The robotaxi market is crowded
Pony AI and Uber are up against big players with robotaxi aspirations like Tesla and Alphabet's Waymo. Competing with them is a tall order, but the company's strategy of partnering with larger, more established companies that already have massive user bases is a smart one. The company is still operating in the red and has relatively minimal sales, but that will change as the company's robotaxis are deployed globally. This is definitely a higher-risk stock, but if you have a tolerance for that, I think it's a good pick.
Should you invest $1,000 in Pony Ai right now?
Before you buy stock in Pony Ai, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Pony Ai wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $611,589!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $697,613!*
Now, it’s worth noting Stock Advisor’s total average return is 894% — a market-crushing outperformance compared to 163% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.