Robotaxi Stock Breaks Through Key Level After Major Partnership News
Here's what to know about this name amid a market seeing some pullback.
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Corrective action is picking up some momentum Tuesday morning, with breadth running about two to one negative, but there are some signs of dip buying with all the indexes well off their early lows.
Palantir PLTR is hurting high-priced growth stocks and certain AI names. There is also weakness in pharmaceuticals and biotechnology. Earnings season has not generated many big winners this quarter, and there is an inclination toward selling the news.
President Trump is meeting with Canadian Prime Minister Mark Carney, but there is little confidence that they are close to making a deal. There may be some positive comments, but this market is growing impatient for hard news rather than promises of good things to come.
Bonds continue to move lower, and interest rates are higher as we await the Fed's interest rate decision Wednesday. This bond action suggests that the central bank may maintain a hawkish tone and is likely more worried about stagflation than just slowing growth.
I've made a few cuts to positions and am waiting patiently for new entry points to develop. There is a lot of short-term risk, and if there is surprise positive news, I'm happy with my current exposure and confident there will be some good entries.
One name I'm watching is Pony AI, Inc. (PONY). Pony AI is a global autonomous driving technology company that develops and commercializes self-driving solutions. It operates in the U.S. and China, with headquarters in Fremont, Calif., and additional locations in Beijing and Guangzhou.
The company aims to create safe, sustainable, accessible mobility through advanced artificial intelligence and robotics. It operates a robotaxi service called PonyPilot, which has a fleet of over 250 robotaxis in cities such as Beijing, Shanghai, Guangzhou, and Shenzhen, offering autonomous ride-hailing services. Pony AI was among the first to receive permits for fully driverless, fare-charging robotaxis in all four Tier-1 Chinese cities.
The PonyPilot app has over 220,000 registered users, and its vehicles have driven more than 33.5 million kilometers autonomously, including 3.9 million driverless kilometers.
On Tuesday, Uber UBER and PonyAI announced a strategic partnership to advance autonomous mobility and plans to launch in the Middle East later this year to expand internationally. Once available, when a rider requests a qualifying ride on the Uber app, they can fulfill their trip with a Pony.ai autonomous vehicle. During the initial pilot phase, these vehicles will have a safety operator onboard until the launch of fully autonomous driving.
Technically, the stock is holding just over its 50-day simple moving average and trying to break through the recent level around $11.70. The Chinese connection is probably holding the stock back to some extent.
At the time of publication, Rev Shark was long UBER and PONY.
