The company did not provide a deadline for deploying robotaxis but stated that the agreement will leverage Xihu Group’s strengths in fleet and asset operations, safety, and service guarantees.

Pony AI Inc. (PONY) on Monday announced a strategic partnership with Shenzhen Xihu Corporation, the city's largest taxi operator, to jointly deploy a fleet of more than 1,000 seventh-generation Robotaxis in Shenzhen in the coming years.

Xihu Group is a pure electric taxi operator with nearly 5,000 taxis currently in operation.

Shares of Pony AI tumbled 17% on Tuesday.

The company did not provide a deadline for deploying robotaxis. However, it said that the agreement will leverage Xihu Group’s strength in fleet and asset operations, safety, and service guarantees. At the same time, Pony.ai will focus on AI technology innovations and scalable Robotaxi dispatch and service.

Pony AI unveiled its seventh-generation autonomous driving system at the Shanghai International Automobile Industry Exhibition in April. The company aims to commence mass production of robotaxis in mid-2025.

On Stocktwits, retail sentiment around PONY rose from ‘bearish’ to ‘neutral’ territory over the past 24 hours while message volume rose from ‘low’ to ‘normal’ levels.

PONY's Sentiment Meter and Message Volume as of 12:10 p.m. ET on June 3, 2025 | Source: Stocktwits


A Stocktwits user expects the shares to trade higher by the end of the day.

Another user expects the stock to touch $20 again. The stock last touched the $20 threshold at the end of May.

According to data from Koyfin, all four analysts covering the stock rate it ‘Buy’ or higher with an average price target of $22, presenting an upside of over 50% from current trading levels.

PONY stock is up by 50% over the past month and by about 21% over the past 12 months.

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