Morgan Stanley has initiated coverage of Pony AI with an overweight rating and a $10 price target. The shares were trading at $4.62 when the report was published, close to their 52-week low of $4.54.
Founded in 2016, Pony AI operates robotaxi services in China. The company has secured the regulatory permits needed to offer commercial robotaxi services in Beijing, Shanghai, Guangzhou and Shenzhen. It currently has a fleet of about 2,000 robotaxis and aims to grow that to more than 3,500 by the end of 2026.
Morgan Stanley forecasts a 74% compound annual growth rate in Pony AI’s revenue from 2026 to 2030, citing fleet expansion in China and the potential to operate overseas. The company reported $125 million in revenue over the last 12 months, up 46%.
The bank also expects Pony AI’s robotruck business to post annual revenue growth in the high single digits to low teens from 2026 to 2030. Pony AI reached unit-economics breakeven in Guangzhou in late 2025 and in Shenzhen in 2026. Morgan Stanley expects the company to reach breakeven in more regions over the next one to two years, supported by lower hardware costs, increased scale and partnerships.
Sources: Investing.com News.