Chinese autonomous-driving company Pony AI has raised its year-end 2026 robotaxi fleet target to more than 3,500 vehicles, up from a previous goal of 3,000, after first-quarter results that beat its own forecasts. The Beijing-based firm announced the revised guidance alongside its Q1 2026 earnings on Tuesday, with shares trading higher before the U.S. market open.
Robotaxi revenue jumps 395%
Pony AI said robotaxi services revenue rose 395.4% year-on-year in the quarter, while fare-charging revenue — the cleanest signal of paid commercial rides rather than test miles — climbed 456.5%. The company attributed much of the surge to the rollout of its seventh-generation, or Gen-7, fleet, which it says has reached unit-economics breakeven at the city level. Total quarterly revenue reached roughly $34.3 million, up about 145% from a year earlier and ahead of analyst expectations.
Fleet target raised after a strong quarter
The driverless fleet has already passed 1,700 vehicles, meaning the new 3,500 goal implies roughly 1,800 additional deployments over the remaining seven months of the year. Pony AI also lifted its full-year revenue outlook, now expecting 2026 robotaxi revenue to come in at more than 3.5 times the 2025 level, up from a prior guide of three times. Average weekly paid orders in May ran 119% above early-January levels, and registered users more than tripled year-on-year. The aggressive expansion mirrors moves across China's robotaxi sector, including XPENG's mass-produced robotaxi and the ECARX and May Mobility purpose-built fleet deal.
Closing in on Waymo's footprint
Pony AI now operates in more than 20 cities and recently launched what it describes as Europe's first commercial robotaxi service in Zagreb, in partnership with Uber and Rimac-owned mobility firm Verne, with paid driverless trials also under way in Dubai. A 3,500-vehicle fleet would put Pony AI on roughly the same headcount footing as Waymo, which runs about 3,000 vehicles delivering around 500,000 paid rides per week across 10 U.S. cities, while Baidu's Apollo Go fields more than 1,000 vehicles across 22 cities. The competitive picture continues to tighten even as some operators face setbacks, such as Waymo's freeway service pauses. Whether the higher target speeds Pony AI's path to profit or extends its cash burn is a question for the back half of 2026; the company has not issued a consolidated profit forecast.
Reporting based on coverage from The Next Web.