Yamato: The autonomous taxi service of Pony.ai is expected to become the main source of income from 2027 onwards, maintaining a buy rating on the stock.

Daiwa analysts report that Pony.ai is steadily expanding the size of its fleet and commercializing its autonomous taxi services. These analysts state that in the second quarter, the company launched its 7th generation of autonomous taxis, with a production of over 200 vehicles by the end of June. The analysts also mention that Shanghai has issued autonomous commercial operation licenses to several autonomous taxi operators, including Pony.ai. They predict that revenue from autonomous taxi paid services may become the main source of income starting in 2027. Pony.ai may achieve breakeven for the 7th generation of autonomous taxis this year, and achieve breakeven for the entire autonomous taxi fleet starting in 2026. Daiwa maintains its buy rating for the stock and maintains a target price of $20.00 for the company's American Depositary Receipts.