Pony AI Proposes New Equity Incentives to Retain Leadership

Pony AI US7329081084

Shares of Chinese autonomous vehicle developer Pony AI saw significant gains on Friday. The rally followed the company's board announcement of a proposed new share incentive plan for 2026 and the granting of conditional stock awards to its co-founders, initiatives designed to provide long-term retention incentives.

This corporate development comes on the heels of positive market sentiment triggered the previous day by news of a deepened strategic alliance with BAIC BJEV. The board has recommended adopting a "2026 Share Plan" to supersede its existing 2016 scheme. The proposed plan would allow for equity-based compensation awards representing up to 10% of the company’s issued shares at the time of its adoption.

Concurrently, Pony AI has granted conditional Restricted Share Unit (RSU) awards to its co-founders, Chief Executive Officer Dr. Jun Peng and Chief Technology Officer Dr. Tiancheng Lou. The total grant comprises 2 million units, equivalent to 0.32% and 0.14% of issued shares, respectively, pending shareholder approval. The first vesting tranche for these awards is scheduled for December 25, 2026.

Aggressive Expansion Underway

These proposed compensation measures align with a period of vigorous growth for the company. Following its dual-primary listing in Hong Kong in November 2025—which stood as the world's largest autonomous driving IPO at the time—Pony AI has outlined ambitious targets. The firm plans to triple its robotaxi fleet to more than 3,000 vehicles by the end of 2026.

This expansion builds upon a robust third-quarter 2025 performance, where total revenue surged 72% year-over-year, with revenue from robotaxi services jumping 89.5%. The company also reported achieving city-level cost parity for its seventh-generation robotaxis operating in Guangzhou for the first time. In parallel, Pony AI is collaborating with partners such as SANY Truck on fourth-generation autonomous trucks, with mass production slated for 2026.

Upcoming Financial Calendar

The next key milestone for investors will be the anticipated release of the Q4 2025 financial results around March 24, 2026. Market analysts are currently forecasting a fourth-quarter loss per share of -1.52 HKD. Revenue expectations for the subsequent quarter are set at approximately 210.72 million HKD.