10 Worst Performing NASDAQ Stocks in 2024

8. Li Auto (NASDAQ:LI)

Year to Date Gain: -26.09%

Number of Hedge Fund Holders: 17

Li Auto Inc. (NASDAQ:LI) is one of China’s biggest automakers, designing, developing, manufacturing, and selling premium smart electric vehicles. It has sought to differentiate itself from the competition in selling extended-range electric vehicles (EVs).

Nevertheless, the Chinese EV giant has had a rough run in the market, going down by 26.09% and cementing its position as one of the worst-performing NASDAQ stocks in 2024. The company’s sentiments took a hit early in the year, disappointing investors with guidance that raised concerns about its core business.

Li Auto Inc. (NASDAQ:LI), saying it was poised to ship between 100,000 and 103,000 electric vehicles in the first quarter, could have gone better with the market. That’s because the guidance was way lower than the 131,805 cars that the company shipped in the fourth quarter. The company delivered 80,400 vehicles in the first quarter, missing its guidance by a big mark, affirming slowing growth.

Additionally, the stock’s sentiments took a hit after the company’s fully electric car, Li Mega, failed to boost sales in the second quarter as expected. The car only boosted vehicle revenues by 8.4%, raising serious questions about demand in the market as the company battles stiff competition from the likes of Tesla.

Nevertheless, Li Auto Inc. (NASDAQ:LI) delivered better-than-expected second-quarter results, earning $0.10 a share as sales reached $4.4 billion. However, declining vehicle margins are once again raising serious concerns about Li Auto cutting vehicle prices as it tries to fuel sales. Operating margin came in at 1.5%, up from a negative margin of 2.3% in the first quarter but lower than the 5.7% in the same quarter of 2023.

The number of hedge funds holding Li Auto Inc. (NASDAQ:LI) dropped from 29 to 17, reflecting a decline in interest among hedge funds.