Investors have been increasingly interested in Tesla Inc ever since the electric vehicle behemoth revealed plans of launching a robotaxi service in 2025.
Meanwhile, analysts seem confident that Chinese self-driving stocks are emerging as top contenders as well.
Two of them in particular, Pony AI and Hesai Group, they’re convinced, are strongly positioned for significant growth that makes them attractive options for investors looking to capitalise on the future of transportation.
Pony AI Inc (NASDAQ: PONY)
Deutsche Bank analyst Bin Wang currently sees upside in Pony AI stock to $20 that translates to about a 50% upside from current levels.
Wang is bullish primarily because Pony has superior intelligent-driving technology that has already received “all available regulatory permits in tier-1 cities in China.”
The analyst went on to call Pony AI a global leader in “large-scale commercialisation of autonomous mobility” and said its robotaxis business will achieve profitability before by 2030.
He expects endorsement from the Chinese government to further help catalyse exponential growth in robotaxis that could drive Pony share price up over the next 12 months.
Robotaxi and robotruck businesses made up some 58% of Pony’s revenue last year – a contribution that Bin Wang sees rising to 97% by the end of this decade.
For the robotaxi services business of Pony AI Inc, in particular, he forecasts a compound annualised growth rate of 171% through 2030.
Investors should also know that Goldman Sachs analysts currently see a meaningful upside in Pony shares from current levels as well.
Hesai Group (NASDAQ: HSAI)
Hesai stock has been in a sharp uptrend over the past two months but Goldman Sachs analyst Tina Hou is convinced it’s not out of juice just yet.
Hesai is headed for a new product cycle that could meaningfully grow its global footprint in 2025, she told clients in a recent report.
The analyst sees further upside in US listed shares of Hesai Group to $18.40 that indicated potential for another 20% upside from current levels. Note that Hesai’s share in the market for lidar technology stood at about 37% in 2023.
Hesai is well-positioned to benefit from China NEV market’s navigation on autopilot (NOA) adoption acceleration starting from 2025E, together with the launch of lower-cost products, to drive LiDAR usage by mass-market vehicle models.
Despite the massive surge since late November, Tina Hou is convinced that Hesai shares are attractive at writing as the potential tailwinds are not fully baked into the current price.
Much like Pony AI, Hesai stock doesn’t currently pay a dividend either and is, therefore, unattractive for those interested in creating an additional source of passive income.
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