Pony AI Inc (PONY) stock is soaring 5.19% in pre-market trading on Friday, following the company's announcement of a significant expansion in its autonomous driving operations. The autonomous vehicle technology company has launched around-the-clock Robotaxi services in the Chinese megacities of Guangzhou and Shenzhen, marking a major milestone in the commercialization of self-driving technology.

The expansion goes beyond these two cities, with Pony AI also extending its testing hours to 24/7 in Beijing. This move demonstrates the company's commitment to pushing the boundaries of autonomous driving technology and its readiness to meet the increasing demand for innovative transportation solutions in China's urban centers.

Adding to the positive sentiment, Daiwa analysts have initiated coverage of Pony AI with a buy rating and a target price of $20.00, significantly higher than its last closing price of $14.45. The analysts project that Pony AI could break even on a unit level for its robotaxi fleet starting in 2026, with potential for positive operating profit and net profit from 2029. They also anticipate accelerated revenue growth from 2027 when the company's robotaxi fleet is expected to reach 10,000 across China's four biggest cities.

Investors appear to be reacting positively to Pony AI's aggressive expansion and the optimistic outlook from analysts, seeing the company as a frontrunner in shaping the future of urban mobility. As Pony AI continues to develop its innovative business model for ride-hailing and engage with regulators to enable the commercialization of autonomous driving, the stock may see further interest from both retail and institutional investors.