Meet the Stock That Is a Fraction of Tesla's Size and That Generated Nearly 400% Revenue Growth From Robotaxis Last Quarter

Tesla is one of the largest companies in the world, with a market cap of $1.6 trillion. Its business centers around electric vehicles (EVs), and investors are particularly hopeful about its future robotaxi business. Tesla is in the early innings of growing that area, but that's often a key reason growth investors point to as to why the stock can make for a promising long-term investment.

But what if I told you there was a much smaller company than Tesla, which is already generating millions in revenue from robotaxis? Meet Pony AI (NASDAQ: PONY), which recently posted some exciting earnings numbers, with its robotaxi business showing some promising growth. Let's take a closer look at the stock to see if it may be a better option for investors than investing in Tesla.

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Pony AI isn't profitable just yet, but the business is intriguing

On Tuesday, Pony AI reported its first-quarter numbers for 2026, for the period ending March 31. Revenue totaling $34.3 million was up 145% from a year ago. The company operates robotaxis in China, and revenue from that business grew by 395% to $8.6 million. It also generates revenue from its robotruck business, which involves autonomous freight vehicles, and from intelligent solutions.

Pony AI's fleet of robotaxis has grown from 3,000 units to more than 3,500. And while its key market is China, the company has begun growing internationally. It has initiated deployment in Croatia, and says it has a presence in nine countries. It plans to be in over 20 cities by the end of the year.

As the company has grown, however, its losses have also expanded. Pony AI's net loss totaled $53.5 million this past quarter, up from a loss of $37.4 million in the prior-year period.

A much smaller stock, with potentially more significant upside

Tesla is a much bigger name in the EV and robotaxi markets, but Pony AI may prove to be the better long-term investment. Its market cap is around just $4 billion. It has been struggling over the past 12 months, declining by 46%, but with some promising growth opportunities, it may be an underrated buy.

There is risk with the stock given its lack of profitability, but that's not terribly surprising given its early growth stage. Geopolitical concerns, specifically worrisome U.S.-China trade relations, may be weighing on the stock as well.

Pony AI has plenty of room to rise, given the bearishness it has endured over the past year. With encouraging prospects, it could be a good growth stock to consider if you're comfortable with the risk and willing to hold for the long term.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.