Pony AI Inc

PONY

Market cap $6.85B

Chinese autonomous driving tech company, Pony AI (PONY), is bringing its self-driving electric vans to Europe. Meanwhile, Stellantis (STLA) continues to struggle when it comes to accelerating its position in the auto space.

Automaker Stellantis and Chinese autonomous vehicle company Pony.ai have signed a non-binding agreement to build robotaxis for deployment in Europe.

Pony.ai (NASDAQ: PONY) and Stellantis have signed a non-binding Memorandum of Understanding to accelerate the development and rollout of robotaxi solutions across Europe. The partnership will combine Pony's European division autonomous driving software with Stellantis' medium van platform to deliver safe, scalable, and efficient urban mobility solutions.

Stellantis and Chinese autonomous driving firm Pony.ai said on Friday that they had signed an agreement to jointly develop and test self-driving vehicles in Europe.

Pony.ai's Luxembourg unit and Stellantis said Friday they will work together on testing robotaxis for Europe. The companies will start testing in Luxembourg in the coming months, before expanding to other parts of Europe next year.

Stellantis and Pony.ai will jointly develop and test SAE Level 4 (hands-off, eyes-off) autonomous vehicles, integrating Stellantis' AV-Ready Platform with Pony.ai's autonomous driving technology.  Initial focus on battery-electric medium size vans, ideal for robotaxi applications.

Pony.AI and WeRide have received a key approval from Chinese securities regulators that clears the way for the for the autonomous vehicle technology companies to pursue secondary listings on the Stock Exchange of Hong Kong.

The China Securities Regulatory Commission announced on Tuesday that autonomous driving firms Pony AI and WeRide have filed to issue and list shares in Hong Kong. The Guangzhou-based firms are amongst a growing wave of Chinese companies seeking secondary listings in Hong Kong, in what has been a bounce-back year for the city's IPO market.

Autonomous vehicle technology specialist Pony AI (PONY 9.19%) galloped well higher on the stock exchange Monday. Much of this had to with an initiation of coverage by an analyst, which helped accelerate the company's share price by more than 9% that trading session.

Pony AI (PONY 2.36%) has surged nearly 80% since I last covered it, driven by the expansion of robotaxis in China, partnerships with Toyota, and global testing. With analysts rating it a strong buy and price targets up to $27, the upside looks compelling -- but risks remain.