We recently published a list of Why These 15 Electric Vehicle Stocks Are Plunging in 2025. In this article, we are going to take a look at where Lotus Technology Inc (NASDAQ:LOT) stands against other electric vehicle stocks that are plunging in 2025.
The electric vehicle sector surged in popularity during the immediate post-COVID era as investors poured money into what seemed like the future of transportation. Back then, the promise of a green revolution fueled sky-high valuations and bold predictions. But that enthusiasm has since fizzled. Most electric vehicle stocks have plunged significantly and delivered consistent losses to shareholders.
Tesla seems to be the only company capable of selling electric vehicles in the West profitably, but even that company has been under tremendous pressure due to the politicization of its brand.
After Trump’s election, things look even bleaker for these companies and many of them are plunging. That said, many analysts now think that there are buying opportunities here, especially as a large portion of Tesla customers who previously would’ve bought Teslas are now likely to buy alternative EVs. Trump may also be softer than previously thought on EVs, as EV subsidies are still in place. It’s a good idea to take a look at the EV stocks that have been sold off the most so far this year.
Methodology
For this article, I screened the worst-performing electric vehicle 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).
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Lotus Technology Inc (NASDAQ:LOT)
Number of Hedge Fund Holders In Q4 2024: 11
Lotus Technology Inc (NASDAQ:LOT) sells battery electric lifestyle vehicles globally under the Lotus brand.
The stock is down significantly so far in 2025 as it disclosed increasing liabilities, including significant put option liabilities and convertible. This was compounded by high operating expenses and limited cash reserves relative to its debt obligations.
Moreover, it reported disappointing financial results for Q4 2024. The company posted a net loss of $667 million for the first nine months of 2024, a negative profit margin of 88.89%.
The consensus price target of $7 implies 329.45% upside.
LOT stock is down 54.71% year-to-date.
Overall, LOT ranks 4th on our list of electric vehicle stocks that are plunging in 2025. While we acknowledge the potential of LOT 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 LOT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
