Why Hyliion Holdings (HYLN) Is Plunging in 2025?

We recently published a list of  Why These 15 Automotive Stocks Have Been Plunging In 2025. In this article, we are going to take a look at where Hyliion Holdings Corp. (NYSEAMERICAN:HYLN) stands against other automotive stocks that have been plunging in 2025.

Automotive stocks have been among the worst-performing names in the past few months, and even before that, if you exclude Tesla from the list. Donald Trump’s election caused panic among electric vehicle startups, and his tariff policies caused that panic and uncertainty to spread among traditional automakers.

Meanwhile, inflationary pressures and rising interest rates have dampened consumer demand for big-ticket purchases like vehicles. The recent inflation read is a step in the right direction and can eventually help bring rates lower, but the automotive sector is unlikely to pull off a big recovery anytime soon.

Methodology

For this article, I screened the worst-performing automotive stocks year-to-date.

I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A technician wearing a safety suit and goggles working on a battery pack for an electric vehicle.

Hyliion Holdings Corp. (NYSEAMERICAN:HYLN)

Number of Hedge Fund Holders In Q4 2024: 13

Hyliion Holdings Corp. (NYSEAMERICAN:HYLN) makes electricity-producing technology for commercial vehicles. It focuses on distributed power generators.

The stock is down significantly so far in 2025 as investors are nervous about the company’s persistent losses. Hyliion (NYSEAMERICAN:HYLN) reported a net loss of $52 million for 2024, and while this is an improvement from 2023, it is still significant.

The company projected only $10 to $15 million in revenue for 2025 and disappointed investors.

Operating expenses remain high, with $64.4 million spent in 2024.

The consensus price target of $2 implies 26.98% upside.

HYLN stock is down 39.27% year-to-date.

Overall, HYLN ranks 7th on our list of automotive stocks that have been plunging in 2025. While we acknowledge the potential of HYLN 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 more promising than HYLN but that 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.