Yamato: The seventh generation of Xiao Ma Zhi Xing autonomous driving taxi may achieve a balance between profit and loss at the single car level by the end of the year. Maintain a buy rating.

The Daiwa report indicates that although Pony.ai's seventh-generation autonomous taxis are expected to achieve break-even at the individual vehicle level by the end of the year, it is unlikely to improve the overall profit situation of the entire autonomous taxi fleet until 2026. Pony.ai continues to improve operational efficiency, driving down the cost per kilometer of the fifth and sixth generation autonomous taxis to 2.5 RMB in the second quarter. Daiwa also lowered Pony.ai's insurance premiums by 18% compared to the second quarter based on an assessment of accident rates. Daiwa maintains a buy rating on Pony.ai's stock with a target price of $20.00.