Pony AI plans Europe robotaxi push; aviation investors split on airline stocks
President Trump has threatened to double the tariff on Canadian-assembled cars to 50% and to apply the same duty to previously exempt auto parts, a move Industry Minister Melanie Joly called “real” and a threat to Canada’s automotive sector. Joly said Wednesday she has spoken with the presidents of the Canadian units of Ford Motor, Toyota and Honda about federal tools to help the sector “weather the storm.” The federal government will “deploy the tools available” to assist the industry, Joly said.
In a slate of analyst notes on the broader auto and transport sector, analysts at Citi said Chinese autonomous-driving firm Pony AI plans to deploy its first 2,000 robotaxis primarily in Europe, with a smaller batch headed to the Middle East. The vehicles will initially be exported from China, with a potential switch to European local brands later, and Pony AI will earn per-mile revenue from the testing phase onward, the analysts said, citing company management.
Pony AI management is targeting 3,500 units this year and has set an internal target of 10,000 units for next year, the Citi analysts said. Overseas markets would account for 30% to 40% of the total, depending on regulatory approval cadence. Management views stricter entry-permit standards as favoring industry leaders with strong safety track records, the analysts said.
Investor sentiment across European airlines has become “more debated,” with the overall mood slightly pessimistic, Citi analyst Conor Dwyer said in a separate note. Both short and long crowding metrics have risen across most of the sector month-over-month, according to Dwyer. Large investors are placing big bets that airlines will do well, while others are taking the opposite view, and the resulting instability is making stocks “jump around wildly,” the analyst said.
Ryanair, Air France-KLM and IAG saw the highest proportion of positive bets, while sentiment toward Lufthansa and Wizz Air was more pessimistic, Dwyer said. Lufthansa shares rose 2.5%, followed by Ryanair, up 2.2%, and Wizz Air, up 2%. Air France-KLM fell 0.3%.
Deutsche Bank upgraded French airport operator Aeroports de Paris to buy from hold, saying the share price “doesn’t reflect a postpandemic rebound in tourism flows” through the group’s hubs. Deutsche analyst Harishankar Ramamoorthy said “regulatory clarity is meanwhile on the horizon,” which is likely to dispel some investor fears. The bank raised its target to 130 euros from 110 euros. Shares closed at 112.50 euros on Tuesday.
In Thailand, ttb wealth securities analyst Saksid Phadthananarak raised his target on Airports of Thailand to 75.00 baht from 65.00 baht, maintaining a buy rating. Earnings are likely to grow 7% this year, driven by cost controls that keep employee expenses flat and a 53% increase in the international passenger service charge, effective from late June, the analyst said. King Power’s 9 billion baht debt repayment to AOT last month should ease concerns about the financial position of the duty-free operator, which runs concessions at some AOT airports. Shares were 0.4% higher at 66.50 baht.