Soros Fund Management's Q2 Investment in Pony AI Already Up 100%

George Soros, renowned for his successful investment track record and for famously breaking the Bank of England in 1992, has made a significant move into the autonomous vehicle sector. In Q2, Soros Fund Management (SFM) purchased 226,755 shares of Pony AI (Nasdaq: PONY) at an average buy price of $11.01 (£8.33) per share, according to a 13F-HR filing with the US Securities and Exchange Commission.

This $2.4 million (£1.8 million) investment has already yielded more than 100% gains, with Pony AI's stock soaring past $22.45 (£16.98) during after-hours trading on Tuesday. Currently, the hedge fund owns more than 28 million shares valued at over $63 million (£47.6 million).

A Brief on Soros's Investment Legacy

George Soros, often called the 'man who broke the Bank of England,' gained global fame in 1992 when he made a profit of $1 billion (£756.3 million) from short-selling the British Pound. Beyond his investment prowess, Soros has committed over $32 billion (£24.2 billion) to charitable causes through the Open Society Foundations.

Soros established his hedge fund, Double Eagle, in 1969, which delivered average annual returns of around 30% until 2000. Over the years, the fund's name evolved, reflecting its changing structure, and in 2011, it transitioned into a family office, returning outside capital to investors and focusing on overseeing Soros's personal wealth.

What's Driving Pony AI's Stock Rally?

Pony AI specialises in developing and commercialising autonomous driving technologies for robotaxis, robotrucks, and personal vehicles. As of April 2023, the company claims to have accumulated over 21 million kilometres of autonomous driving worldwide.

Last week, Pony AI announced the deployment of its 300th ARCFOX Alpha T5 Robotaxi, developed in partnership with Beijing Automotive Industry Corporation. This milestone marks a significant step towards large-scale deployment and commercialisation. The company plans to operate a fleet of 1,000 vehicles in Beijing and Shenzhen by the end of the year. These vehicles feature Pony AI's Gen-7 autonomous driving system, which aims to boost efficiency and safety.

Strategic Partnerships and International Expansion

Earlier this month, Pony AI announced a partnership with Dutch EV manufacturer Stellantis to develop Level 4 autonomous vehicles for the European market. The initial phase involves deploying test vehicles based on the Peugeot e-Traveller in Luxembourg, with plans for a broader launch across European cities in 2026. The collaboration will focus on light commercial vehicles, a segment led by Stellantis through its Pro One division.

Going Public in Hong Kong

In a move to fund future growth, Pony AI announced on Monday its intention to launch an initial public offering (IPO) in Hong Kong. The company plans to issue 41.95 million Class A shares at a price of up to HK$180 (£17.53) per share. The listing on the Hong Kong Stock Exchange is scheduled for 6 November, while it will maintain its Nasdaq listing. The proceeds will be used to accelerate the commercialisation and R&D of its Level 4 autonomous driving technology, alongside general working capital.

Analyst Outlook and Future Potential

According to TipRanks, analysts have a 'strong buy' consensus on Pony AI, with an average 12-month price target of $26.62 (£20.13) per share. The company's aggressive expansion plans and technological advancements position it as a prominent player in the autonomous vehicles sector.

Soros Fund Management's recent sizeable stake in Pony AI highlights confidence in the company's growth trajectory. With strategic partnerships, international expansion, and a clear focus on technological innovation, Pony AI is poised to capitalise on rising demand for autonomous mobility solutions.

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