PONY-W Teams Up with MOORE THREADS for Strategic Collaboration to Boost Large-Scale Autonomous Driving Deployment in China Using Local AI Computing Resources

Launch of Toyota bZ4X Robotaxi: The first mass-produced Toyota bZ4X Robotaxi has been completed, signaling the start of large-scale production and operations in collaboration with PONY-W, Toyota China, and GAC Toyota.

Deployment Plans: A total of 1,000 Toyota bZ4X Robotaxis are set to be deployed within the year, primarily in major cities such as Beijing, Shanghai, Guangzhou, and Shenzhen.

Technology Features: The bZ4X Robotaxi is equipped with PONY-W's advanced seventh-generation autonomous driving system, enhancing its operational capabilities.

Financial Outlook: PONY-W anticipates a narrowing of its net loss to between USD 69 million and USD 86 million by 2025.

Strategic Collaboration: PONY-W has announced a partnership with MOORE THREADS to enhance L4 autonomous driving technology through the training and optimization of its core technologies, including PonyWorld and the Virtual Driver system.

AI Computing Power: This collaboration marks the first large-scale application of domestic AI computing power in critical training and simulation stages for PONY-W, indicating MOORE THREADS' entry into the autonomous driving sector.

Future of Smart Mobility: The partnership aims to build infrastructure for the next generation of smart mobility and logistics, accelerating the transition of autonomous driving technology to large-scale applications.

Financial Outlook: PONY-W anticipates a narrowing of its net loss to USD 69-86 million by 2025, reflecting its ongoing efforts to commercialize autonomous driving technology.

Profit Alert: PONY-W issued a positive profit alert, expecting a reduced net loss for 2025 between USD 69 million and USD 86 million, significantly lower than the USD 275 million loss in 2024.

Attributable Losses: The net loss attributable to Pony AI Inc. is projected to be between USD 126 million and USD 143 million for 2025, down from USD 274 million in 2024.

Reason for Decrease: The anticipated decrease in losses is primarily due to an increase in gains from fair value changes in investments in publicly traded companies during the reporting period.

Market Activity: As of February 3, 2026, PONY-W experienced short selling of $15.43 million, with a short selling ratio of 20.579%.

Citi's Outlook on Chinese Carmakers: Citi has a neutral outlook for Chinese carmakers in 1Q26, predicting that BYD, Geely, and Leapmotor may outperform the market due to model updates and strong export growth, while others like Seres and Li Auto may struggle with profit margins and weak sales.

Industry Challenges and Tailwinds: The Chinese auto industry is expected to face five major tailwinds, including increased EV market share and export growth, but also five challenges such as rising costs and cautious retail growth for EVs, leading to a potential decline in wholesale and retail forecasts for FY26.

Stock Recommendations: Citi has recommended several stocks, including BYD, Pony, WeRide, Hesai, Minth Group, and Weichai Power, amidst a backdrop of short selling activity and varying market performance.

Market Conditions: The report highlights a potential end to the price war in passenger vehicles and a favorable phase for commercial vehicle demand, while also noting high inventory levels of fuel vehicles as a concern for the market.

Business Collaboration: PONY-W has partnered with Aitebo to create a fully autonomous driving service fleet, enhancing the application of autonomous driving technology in urban and travel scenarios.

Fleet Development: The collaboration focuses on developing a fleet based on PONY-W's 7th-generation Robotaxi model, targeting transportation needs between urban areas and airports or high-speed rail stations.

Market Performance: The HSI rose 0.33% to 26,718, with total half-day turnover reaching $127.938 billion, while the HSCEI and HSTECH also saw slight increases.

BABA-W Support: Alibaba's share price increased by 2.6% after rumors of supporting its chip subsidiary's separate listing, coinciding with the acceptance of Enflame's IPO application.

Sector Movements: Chip stocks experienced declines, with notable drops in SMIC and HUA HONG SEMI, while financials showed mixed results, with HSBC sliding slightly and HKEX gaining.

Stock Highlights: BYD and robotics stocks like JOHNSON ELEC faced losses, while XIAOMI surged 2.5% following a share buyback announcement, and POP MART's new product launch boosted its shares by 6.5%.