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Wall Street's Latest Creation: A 2x Leveraged Bet on Chinese Robotaxis Called “PONX”

Written by Bernie Thurston | Dec 3, 2025 8:00:00 AM
Or: How I Learned to Stop Worrying and Love Ticker Symbols That Sound Like Cartoon Characters

The financial innovation machine has blessed us with another masterpiece. Meet the Tradr 2X Long PONY Daily ETF (ticker: PONX), a product that answers the question literally nobody asked: "What if we took a recently-IPO'd Chinese autonomous vehicle company and added 2x daily leverage?"
It's beautiful. It's terrifying. It's exactly the kind of thing that makes you wonder if we've learned anything since 2008, or if we're just getting better at packaging risk in increasingly entertaining ways.

The Basics (If You Can Call Them That)

PONX launched on September 8, 2025, and recently hit new exchange listings. The underlying asset is Pony AI Inc. (NASDAQ: PONY), a Chinese autonomous driving company that operates driverless robotaxis across Beijing, Shanghai, Guangzhou, and Shenzhen. They IPO'd in November 2024, raising $260 million in one of the largest autonomous driving IPOs in U.S. market history.
The ETF seeks to deliver 200% of the daily performance of Pony AI's stock. So, if PONY goes up 5% today, PONX should go up 10%. If PONY drops 5%, PONX drops 10%. Daily reset, compounding effects, all the usual leverage disclaimers apply.

Expense ratio: 1.30%
Current 52-week range: $11.34 to $72.51
Translation: This thing moves like a caffeinated squirrel


The Ticker Symbol Deserves Its Own Section

Let's address the elephant, or rather, the pony, in the room. They called it PONX.
Not PNYX. Not PAII (for Pony AI). Not ROBO or AUTO or anything remotely serious sounding. PONX. It sounds like either:

  • A rejected Pokémon name
  • The noise a cartoon character makes when bounced on the head
  • A prescription medication with concerning side effects

And yet, here we are. You can now tell your financial advisor you want to go long PONX, and technically, that's a legitimate statement. The future is weird.


The Underlying Story (Which Is Actually Interesting)

Setting aside the ticker comedy, Pony AI is a genuinely significant player in autonomous vehicles. Founded in 2016, they've racked up some impressive credentials:

The Good:

  • 55+ million kilometres of autonomous driving globally
  • First company with fully driverless commercial robotaxi permits in all four Chinese Tier-1 cities
  • 720+ robotaxis operational, targeting 1,000 by end of 2025, expanding to 3,000+ by 2026
  • Partnerships with Toyota ($400M investment), BAIC, Stellantis, and Qatar's largest transportation provider
  • Recently launched Gen-7 robotaxis with 70% cost reduction vs. prior generation
  • Q2 2025: Robotaxi revenue up 158% year-over-year
  • Goldman Sachs price target of $24.50 (54.5% upside from recent levels)
  • Cathie Wood's ARK Invest recently loaded up with $12.9M worth


The Not-As-Good:

  • Still burning cash (over $200M in losses in 2024)
  • Analysts estimate profitability by 2029 (classic “future profits justify current valuation” situation)
  • Had a California DMV permit suspension in 2021 after an accident
  • NHTSA investigation led to first-ever automated driving system recall
  • It's a Chinese company operating in a geopolitically sensitive sector
  • The stock opened at $15, crashed to $4.18, now trades around $18, and that's before you add leverage


The Risk Profile (Or: How to Lose Everything By Lunch)

The prospectus contains this beautiful sentence: “Investors would lose all of their money if the Fund's underlying security moves more than 50% in a direction adverse to the Fund on a given trading day.”

Read that again. If Pony AI stock drops more than 50% in a single day, PONX goes to zero. Not “loses money.” Not “performs poorly.” Zero. Complete wipeout. Before the closing bell.

Given that PONY has already demonstrated the ability to drop from $15 to $4.18 (a 72% decline) in its short public life, this isn't theoretical. This is the financial equivalent of juggling chainsaws while riding a unicycle across a tightrope suspended over a shark tank.

Additional features include:

  • Daily rebalancing means multi-day performance will deviate wildly from 2x the underlying
  • Volatility drag from compounding can destroy value even if the stock ends flat
  • High expense ratio (1.30%) eats into returns
  • The underlying company has minimal analyst coverage and massive execution risk
  • You're betting on Chinese regulatory environment, autonomous driving technology, and unit economics all working out


Why This Exists (The Cynical View)

The leveraged single-stock ETF category has exploded recently. GraniteShares' 2x Long NVDA ETF (NVDL) has $2.9 billion in assets after posting a 439% gain in 2024. Retail investors have demonstrated an insatiable appetite for leveraged bets on individual names, particularly in high-volatility sectors like tech.

After Trump's election victory in November, some leveraged single-stock ETFs surged 90% in four trading sessions. The message was clear: there's gold in them thar hills of maximum leverage.

Tradr (owned by AXS Investments) saw an opportunity. Autonomous vehicles are hot. Chinese tech has momentum. Pony AI just IPO'd with fanfare and institutional backing. The stock is volatile enough to make leveraged products interesting but legitimate enough to pass regulatory scrutiny.

So, they launched PONX, presumably after someone in marketing said, “the ticker symbol writes its own headlines” and everyone in the room nodded sagely.


Why This Exists (The Optimistic View)

Autonomous vehicles represent a multi-trillion-dollar opportunity. Pony AI is a legitimate player with real technology, actual customers, and meaningful partnerships. If robotaxis achieve widespread adoption over the next decade, early investors in leading platforms could see substantial returns.

The 2x leverage allows sophisticated traders to:

  • Express high-conviction short-term views on earnings or news
  • Hedge other positions in their portfolios
  • Amplify returns during positive momentum periods
  • Trade around catalysts like regulatory approvals or partnership announcements

For investors who believe in the autonomous vehicle thesis but want more bang for their buck (and are willing to accept more bust for their mistakes), PONX provides a tool. Not a great tool. Not a safe tool. But a tool nonetheless.


The Meta-Commentary

PONX represents something larger than just another leveraged ETF. It's a signpost on the road of financial evolution, marking how far we've come in democratising access to sophisticated (read: dangerous) investment strategies.

Twenty years ago, if you wanted 2x leveraged exposure to a specific pre-profitable Chinese technology company, you'd need a prime brokerage account, options approval, and probably a compliance officer asking uncomfortable questions. Today, you can do it in your Robinhood account while waiting for your coffee.

Is this good? Bad? Both? Neither?

The optimist says we're witnessing the ultimate expression of market efficiency and investor choice. The pessimist says we're watching retail investors get access to financial weapons of mass destruction wrapped in cartoon pony packaging. The realist says it's probably both, and the only certainty is that somebody's going to lose a lot of money while somebody else makes a lot of money, and the ETF issuer collects 1.30% either way.


The Investment Thesis (If You're Actually Considering This)

Let's be clear: this is not an investment. This is a speculation. A very specific, very risky speculation that only makes sense if:

1.    You believe Pony AI will achieve significant milestones in the next few weeks/months (not years, remember, daily reset)
2.    You're actively monitoring the position (this is not buy-and-hold)
3.    You can afford to lose 100% of what you invest (seriously)
4.   You understand leverage mechanics, volatility drag, and compounding effects (if you don't, Google them before proceeding)
5.    You have specific catalysts in mind (earnings, regulatory approvals, partnership announcements)

Potential catalysts include:

  • Pony AI's expansion to 3,000+ vehicles by end of 2026
  • Additional international partnerships (they're in talks with Singapore, expanding in Middle East)
  • Technology milestones (Gen-7 robotaxi scaling, truck platooning tests)
  • Regulatory approvals in new cities
  • Path to profitability becoming clearer (currently estimated 2029)

But remember leveraged single-stock ETFs are designed for trading, not investing. The daily reset mechanism and volatility drag mean holding for extended periods virtually guarantees underperformance relative to 2x the underlying stock's return.


The Verdict

PONX is simultaneously:

  • A legitimate trading vehicle for sophisticated investors with specific short-term views
  • A potential wealth destruction machine for retail investors who don't understand what they're buying
  • A perfect symbol of modern financial markets' ability to package anything into an ETF
  • Proof that someone in finance has a sense of humour (or at least access to a ticker symbol database)

If you're considering buying PONX, ask yourself: Do I have an edge in predicting Pony AI's short-term stock movements? Am I comfortable with the possibility of total loss? Do I understand how daily-reset leveraged products work?

If the answer to all three is “yes,” then PONX might be an appropriate tool for expressing your view.

If the answer to any of them is “no,” then PONX is basically a very expensive lottery ticket with worse odds and a funnier name.

The Bottom Line

The financial industry has given us many things over the years: portfolio diversification, passive index investing, target-date retirement funds. These are useful innovations that help people build wealth responsibly.

And then sometimes the industry gives us a 2x leveraged ETF on a Chinese robotaxi company called PONX, and we're reminded that markets contain multitudes.

Will PONX make some people rich? Probably.
Will it make more people poor? Almost certainly.
Is the ticker symbol going to generate thousands of terrible puns? Absolutely.
Should you bet your retirement on it? Dear God, no.

But does it perfectly capture the intersection of technological optimism, financial engineering, regulatory arbitrage, and human nature's eternal desire to get rich quick while simultaneously accepting absurd levels of risk?

You bet your PONX it does.