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Pony AI Inc (NASDAQ:PONY) stock gained on Friday after it announced that it had produced its 300th ARCFOX Alpha T5 robotaxi, a significant production milestone that accelerates its push toward large-scale commercial services.
The autonomous driving company developed and manufactured the vehicle with Chinese automaker BAIC Group.
The ARCFOX Alpha T5, which began mass production in July 2025, features Pony AI’s seventh-generation autonomous driving system.
Also Read: Pony AI Expands In Singapore And Promises Driverless Rides In Punggol Soon
This integration helps reduce the cost of autonomous hardware by 70% by incorporating automotive-grade components directly into the vehicle’s production line.
Pony AI states this innovation removes a significant cost barrier for mass-producing Level 4 autonomous vehicles.
Pony AI stock has gained 25% year-to-date, as the company remains engaged in activities to drive value. It plans to deploy the new robotaxis in a commercial ride-hailing service across China’s largest cities and explore expansion into the Middle East and Europe.
The vehicle is already undergoing fully driverless testing in Beijing and Shenzhen in preparation for a wider rollout later this year.
Also this week, automaker Stellantis NV (NYSE:STLA) tapped Pony AI to develop and test Level 4 self-driving electric vans in Europe.
The companies will begin initial real-world testing of the autonomous vans in Luxembourg in 2025. They aim to accelerate the rollout of commercial robotaxi operations across European cities starting in 2026.
As it ramps up manufacturing, Pony AI stated it is on track to meet its year-end goals of expanding its total fleet to 1,000 vehicles and achieving break-even economics per vehicle.
Price Action: PONY shares were trading higher by 1.90% to $18.25 at last check Thursday.
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