Pony AI Inc. (PONY) reports third-quarter earnings Tuesday, and there's plenty happening beneath the hood worth watching. The Chinese robotaxi company is riding momentum from fleet expansion while navigating some potential potholes on the supply chain front.

China Operations Keep Growing

The company just announced it's expanding its robotaxi fleet in Guangzhou through a partnership with Sunlight Mobility, with vehicles hitting the streets before year-end. Pony also recently secured a driverless permit in Shenzhen, opening up another major market for autonomous operations.

Smart Money Takes Notice

Singapore's Temasek Holdings, one of the world's largest sovereign wealth funds, picked up over 14,500 shares of Pony AI according to a November 14 SEC filing. The fund also scooped up more than 1.34 million shares of WeRide Inc. (WRD), putting roughly $13.7 million total into the autonomous vehicle space. When sophisticated institutional investors start building positions, it's worth paying attention.

Recent Performance Shows Promise

Looking back at Q2 2025, Pony AI posted a loss of $0.13 per share—a significant improvement from the $0.91 per share loss during the same period last year. Revenue surged nearly 76% to $21.46 million, with robotaxi revenue specifically hitting $1.5 million, marking a 158% year-over-year jump.

The LiDAR Question

Here's where things get interesting. Luminar Technologies Inc. (LAZR) recently hit a new all-time low after Volvo announced it would no longer use Luminar's LiDAR sensors on its ES90 and EX90 vehicles in 2026, citing the company's failure to meet contractual obligations.

Why does this matter for Pony? The robotaxi company selected Luminar-made LiDAR sensors through deals signed in 2021 and 2023. With Luminar stock sliding and bankruptcy concerns mounting, supply chain disruptions could create headwinds for Pony's operations. The good news is that Pony also has an agreement with LiDAR manufacturer Hesai Technology (HSAI), providing some diversification.

Price Action: PONY surged 12.51% to $12.59 at market close, then climbed another 3.26% to $13.00 in after-hours trading, according to market data.