Morgan Stanley initiated coverage of Pony AI Inc. with an Overweight rating and a $10.00 price target, representing a significant premium to the company’s recent trading price.
The bank expects revenue to grow at a 74% compound annual rate from 2026 to 2030. It sees robotaxi fleet expansion in China and potentially other international markets driving that growth.
Founded in 2016, Pony AI is an autonomous mobility company that has been expanding its robotaxi services. It has secured permits to operate commercial robotaxi services in Beijing, Shanghai, Guangzhou, and Shenzhen.
Morgan Stanley said Pony AI has reached unit economics breakeven in Guangzhou and Shenzhen. The bank expects the company to achieve breakeven in more regions in the coming years.