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Goldman Sachs analyst Allen Chang expects Pony AI Inc (Nasdaq: PONY) – an autonomous vehicles startup based out of Guangzhou, China to do exceptionally well in 2025.

He assumed coverage of the robotaxi stock today with a “buy” rating and $19.60 price target that indicates a potential 40% upside from here.

Chang is bullish on Pony AI stock as it’s committed to expanding its fleet of robotaxis from more than 250 at writing to about 1,000 by the end of next year.

Pony AI stock could warrant a higher multiple

Pony AI shares debuted on the Nasdaq Stock Exchange last month at a valuation of $13 each.  

Allen Chang is bullish on this self-driving vehicles company as it’s already making strides in China and could emerge as the country’s premier robotaxi service provider.

“Pony AI is the leader in L4 autonomous mobility in terms of fleet size, offering robotaxi and robotruck services across China,” he told clients in a research note on Monday.

Chang expects Pony AI stock to warrant a higher multiple as the company continues to commercialise its fully driverless robotaxis.  

PONY does not, however, pay a dividend at writing.

What US expansion may mean for PONY

Allen Chang expects expansion into the United States to unlock the next wave of growth for Pony AI that’s already accumulating customers on its mobile app in its home country.  

“According to road-testing reports, Pony AI’s vehicles exhibited safety metrics surpassing those of its local peers in China and outperforming human-driven cars,” he added in his recent report.

James Peng – the company’s chief executive sees the US debut as “hugely important” as well.

PONY will focus on diversifying its supply chain on top of research and development (R&D) under the Trump administration, he revealed in a recent interview with CNBC.

Pony AI stock is pushing to the upside following Goldman Sachs’ bullish note on Monday.

Pony AI Inc could hit 158% CAGR

Goldman Sachs expects Pony AI to aggressively expand its robotaxi fleet and grow its revenue at a compound annualised rate of 27% over the next three years.

But that’s a drop in the bucket considering its analysts expects PONY to then hit a CAGR of up to 158% between 2027 and 2030.

The self-driving vehicles company is committed to achieving profitability before the end of this decade.

Partnerships with automakers as well as logistics firms position Pony AI well for expansion and monetisation, the investment firm concluded.

Note that Allen Chang is not the only one who’s uber bullish on Pony AI stock.

Bank of America analysts also initiated the company’s shares with a “buy” rating last week and said continued fleet expansion will see them hit $18 over the next 12 months.

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