TLDR: Citi analyst Jeff Chung has initiated coverage on autonomous mobility firm Pony AI (NASDAQ:PONY) with a ‘Buy’ rating and a $29 price target. This move reflects Citi’s belief that the robotaxi sector is at a significant inflection point, particularly in China. Pony AI reported strong Q2 2025 financial results, with total revenue increasing 76% year-over-year to $21.5 million, driven by a 158% surge in robotaxi service revenue and a 902% rise in licensing revenue, despite a widened net loss.
On September 29, 2025, Citi analyst Jeff Chung initiated coverage of Pony AI Inc. (NASDAQ:PONY), a leading autonomous mobility technology company, with a ‘Buy’ rating and an ambitious price target of $29. This decision underscores Citi’s conviction that the robotaxi sector is currently at a crucial inflection point, with a particularly optimistic outlook for the market in China.
Pony AI, which operates fully driverless robotaxis through its PonyPilot mobile app in major Chinese cities like Beijing, Shanghai, and Guangzhou, as well as internationally, has demonstrated significant operational and financial progress. The company’s second-quarter 2025 financial results, reported on August 12, 2025, showcased robust top-line growth. Total revenue for Q2 2025 reached $21.5 million, marking a substantial 76% increase compared to the same period last year.
This revenue surge was primarily fueled by multiple streams. Robotaxi Service Revenue experienced a remarkable 158% increase, reaching $1.5 million, with fare-charging revenue specifically growing by over 300%. Additionally, Licensing & Application Revenue saw an extraordinary rise of 902%, contributing $10.4 million to the quarterly total.
Despite this impressive revenue growth, Pony AI’s net loss widened to $53.3 million in Q2 2025, compared to $30.9 million in the prior year. This was attributed to a 75% increase in total operating expenses, which amounted to $64.7 million. The company’s Robotruck services revenue also saw a 10% decrease during the quarter.
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Citi’s initiation marks a new phase for Pony AI, drawing increased attention from Wall Street analysts. This follows earlier coverage by UBS analyst Paul Gong, who initiated a ‘Buy’ rating on Pony AI on August 4, 2025, with an initial price target of $20. The new $29 price target from Citi suggests a strong belief in Pony AI’s potential for future growth and investment opportunities within the rapidly evolving autonomous driving landscape.
