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 SunCar Technology Group Inc. (NASDAQ:SDA) 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 working on an electric car surrounded by a variety of after-sales service components.
SunCar Technology Group Inc. (NASDAQ:SDA)
Number of Hedge Fund Holders In Q4 2024: 5
SunCar Technology Group Inc. (NASDAQ:SDA) is a cloud-based digitalized automotive after-sales services and online auto insurance intermediation company.
The stock is down significantly so far in 2025 after SunCar (NASDAQ:SDA) reported widening losses, with a net loss of $82.27 million over the trailing twelve months. This raised concerns about the company’s ability to achieve profitability.
Plus, SunCar (NASDAQ:SDA) announced a follow-on public offering of up to $50 million in Class A Ordinary Shares, with an additional $7.5 million option for underwriters. This immediately tanked the stock due to dilution potential.
The consensus price target of $12 implies 147% upside.
SDA stock is down 50.26% year-to-date.
Overall, SDA ranks 5th on our list of automotive stocks that have been plunging in 2025. While we acknowledge the potential of SDA 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 SDA 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.
