Why Hesai Group Inc. (HSAI) Went Down On Friday?

We recently published a list of Friday’s 10 Worst Performing Stocks. In this article, we are going to take a look at where Hesai Group Inc. (NASDAQ:HSAI) stands against other Friday’s worst performing stocks.

Wall Street’s main indices bounced back on Friday, erasing the entire week’s losses, as investor hopes were fueled by news that no government shutdown is happening.

The tech-heavy Nasdaq jumped the highest on Friday, adding 2.61 percent, followed by the S&P 500 with a 2.13-percent gain, and the Dow Jones with 1.65 percent.

Ten companies, on the other hand, bucked an overall market optimism, posting modest losses during the day.

In this article, we have named the day’s worst performers and detailed the reasons behind their drop.

To come up with the list, we only considered those with $2 billion in market capitalization and $5 million in trading volume.

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Hesai Group Inc. (NASDAQ:HSAI)

Hesai Group dropped for a third straight day on Friday to end at $19.80 apiece as investors took profits following an all-time high while disposing of shares to mitigate risks from the ongoing trade tensions between the US and China.

Earlier this week, HSAI said it bagged a new deal with a leading European OEM, which it refused to identify, to supply advanced ultra-long-range automotive lidars for the latter’s upcoming platform, including both internal combustion engine (ICE) and electric vehicle (EV) models.

“This multi-year program will last into the next decade, marking it the largest global program for the automotive lidar industry,” it said.

Additionally, HSAI secured a new design win with China’s 5th largest electric vehicle maker for the supply of its ATX lidar, which is expected to enhance the EV’s intelligent driving systems.

Overall, HSAI ranks 5th on our list of Friday’s worst performing stocks. 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. If you are looking for an AI stock that is as promising as HSAI but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.