Why Lotus Technology (LOT) Skyrocketed on Monday?

We recently compiled a list of the 10 Small Firms Kick Off Monday with Strong Gains. In this article, we are going to take a look at where Lotus Technology Inc. (NASDAQ:LOT) stands against the other stocks with strong gains.

Wall Street’s main indices kicked off Monday’s trading with a strong finish, ending in the green territory as investors hoped President Donald Trump would dial back on his wide-ranging tariff plans to allow the US to skirt an economic slowdown.

The Nasdaq posted the largest gain, up 2.27 percent, followed by the S&P 500, up 1.76 percent, and the Dow Jones, at 1.42 percent.

Ten companies under the micro- and small-cap sectors mirrored the broader market optimism, registering double- to triple-digit gains at intra-day trading. In this article, let us explore the reasons behind their gains.

To come up with the list, we considered only the stocks with the highest gains in terms of percentage change.

Lotus Technology Inc. (NASDAQ:LOT)

Lotus Technology Inc. (NASDAQ:LOT) grew its share prices for a second day on Monday, jumping by 53.16 percent at intra-day trading before ending the day just up by 38.6 percent at $2.19 each as investors resorted to bargain-hunting after the company fell to a new record low last week.

Headquartered in Wuhan, China, LOT designs, develops, and sells luxury lifestyle battery electric vehicles.

However, the company appears to be lagging in stock performance as year-to-date share prices were markedly down by 39.6 percent.

Last week, Lotus Technology (NASDAQ:LOT) announced that its Lotus Robotics joined forces with CaoCao Mobility, a leading ride-hailing service provider in China, to launch an innovative intelligent mobility platform for robotaxis, representing a major breakthrough in intelligent mobility for the rail-hailing industry.

The partnership would integrate Lotus Robotics’ cutting-edge intelligent driving solutions with CaoCao Mobility’s operational expertise in large-scale ride-hailing services to accelerate the deployment of intelligent ride-hailing services across China.

Overall, LOT ranks 9th on our list of  small firms kick off Monday with strong gains. 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 as promising as LOT but 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.