Jefferies initiated coverage on Pony AI Inc. (NASDAQ: PONY) with a Buy rating and a price target of $32.80, highlighting the company's strong competitive position in China's rapidly scaling robotaxi market.

The firm said China's autonomous mobility industry was transitioning from pilot programs to large-scale deployment, with the total addressable market expected to reach RMB 52 billion by 2030. Jefferies cited Pony AI's regulatory leadership, cost-reduction roadmap, and vertically integrated technology stack across automakers, transport networks, and system innovation as key differentiators.

Analysts said these advantages positioned Pony AI to benefit from network effects and margin expansion as autonomous driving adoption accelerates. The firm projected the company could capture up to 30% of China's domestic robotaxi market over the long term.