We recently published a list of Top 10 Auto Parts Stocks That Could Surge On Trump’s Auto Tariff Relaxation. In this article, we are going to take a look at where Hesai Group (NASDAQ:HSAI) stands against other top auto parts stocks that could surge On Trump’s auto tariff relaxation.
The corporate earnings season is about to kick off, but investors have something else on their minds: Donald Trump’s tariffs. Since the beginning of his term, Trump has wreaked havoc on the markets with repeated tariffs, resulting in the S&P index being down nearly 8% for the year.
We have observed that some of the most aggressive tariff policies are soon revoked or relaxed, resulting in a rally that brings back the stock prices to reasonable levels. We saw this recently when Donald Trump hinted that Big Tech companies may not bear the brunt of the tariffs as badly as previously thought. As a result, investors poured their money into these companies, thinking they may be critical for the US infrastructure.
A similar development is forming in the auto sector, with Trump likely to offer some relaxation when it comes to importing auto parts or manufacturing vehicles outside the US. Since auto parts companies are critical to the supply chain of this industry, we decided to take a look at the auto parts stocks that could surge following any news of relaxation in tariffs.
To come up with our list of Top 10 Auto Parts Stocks that could surge following Trump’s auto tariff reprieve, we looked at companies in the auto parts industry with a minimum market cap of $300 million that were outperforming their peers.
Logistics robots filling packages in a warehouse, preparing for delivery.
Hesai Group (NASDAQ:HSAI)
Hesai Group is the manufacturer, developer, and seller of three-dimensional light detection and ranging solutions (LiDAR). It develops and designs engineering products and provides validation services, solution services, gas detection products, and other services. The stock has been struggling since the start of this year.
The company’s stock hit an all-time high last month after announcing a significant partnership with BYD and a strong earnings report. In Q4 2024, the company recorded an impressive revenue growth of 28.3%.
On the back of strong earnings, the firm guided for a promising 2025. The company anticipates approximately a 44% to 69% YoY increase in net revenues for the full year. For Q1 2025, the expected net revenue growth is approximately 45% to 50% YoY.
Based on 16 different analyst ratings, Hesai has a highest target price of $35, which means the price could more than double from the current levels. The analyst optimism and a strong earnings profile set up the company well to weather any tariff storm ahead.
Overall, HSAI ranks 9th on our list of top auto parts stocks that could surge On Trump’s auto tariff relaxation. While we acknowledge the potential of HSAI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than HSAI but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
