Investing.com — UBS initiated coverage on Chinese autonomous driving firms Pony.ai and WeRide with Buy ratings, calling them early leaders in the global race to commercialize robotaxi technology.
The brokerage set a price target of $20 on Pony.ai and $12 on WeRide, which implies around 53% and 41% upside, respectively.
Pony.ai is described as the most advanced player in China’s robotaxi market, already operating commercial, driverless services in all four tier-1 cities.
UBS highlighted the company’s seventh-generation vehicles developed with automakers BAIC and GAC, which will reduce vehicle costs below RMB300,000 by mid-2025.
With average daily ride volumes on par with traditional taxis in major cities and flexible pricing to accelerate adoption, UBS expects Pony to scale quickly.
It projects a 96% revenue CAGR through 2030, reaching $2.3 billion, and sees Pony capturing roughly 30% of China’s robotaxi market.
WeRide, meanwhile, stands out for its early international expansion and diversified product suite across robotaxis, robobuses, robosweepers, and robovans.
With operations in 30 cities across 10 countries, WeRide aims to boost overseas revenue from less than 20% today to 50% over the medium term, capitalizing on stronger margins abroad.
UBS noted the launch of WeRide’s purpose-built GXR robotaxi, developed with Geely, which has begun unmanned commercial service in Beijing.
UBS forecasts a 71% revenue CAGR through 2030, reaching RMB10 billion, and a combined 15% domestic and 10% international market share.
While UBS sees both names as strong long-term bets, it flagged regulatory risks, execution hurdles, and the pace of L4 technology development as potential constraints.
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