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.
A worker in a factory using a robotic arm to assemble automotive body panels.
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).
15. Microvast Holdings Inc (NASDAQ:MVST)
Number of Hedge Fund Holders In Q4 2024: 12
Microvast Holdings Inc (NASDAQ:MVST) specializes in lithium-ion battery systems and components for electric vehicles.
The stock is down significantly so far in 2025 due to concerns over declining quarterly earnings and future profitability. It fell significantly in late January, and competition in the electric vehicle battery sector and uncertainty surrounding production made investors anxious.
Earlier, on January 13, 2025, the stock fell by 15.53%, attributed to negative sentiment following continuous losses. And obviously, recent uncertainty surrounding tariffs is only making things worse.
The consensus price target of $3.33 implies 122.97% upside.
MVST stock is down 28.26% year-to-date.
14. RumbleON Inc (NASDAQ:RMBL)
Number of Hedge Fund Holders In Q4 2024: 5
RumbleON Inc (NASDAQ:RMBL) is an online retail and e-commerce company company that specializes in pre-owned recreational and automotive vehicles.
The stock is down significantly so far in 2025 due to disappointing Q4 2024 financial results. RumbleOn reported a 13.4% year-over-year decline in Q4 revenue to $269.6 million, alongside a net loss of $56.4 million.
This was an improvement from the previous year, but the results included $39.3 million in intangible asset impairment charges. Full-year revenue for 2024 also fell by 11.5% to $1.209 billion.
The consensus price target of $5.25 implies 38.16% upside.
RMBL stock is down 28.82% year-to-date.
13. Miller Industries Inc (NYSE:MLR)
Number of Hedge Fund Holders In Q4 2024: 14
Miller Industries Inc (NYSE:MLR) is a company that sells towing and recovery equipment, including wreckers, car carriers, and transport trailers.
The stock is down significantly so far in 2025 due to a disappointing Q4 2024 report and weak 2025 guidance.
Miller Industries reported Q4 2024 earnings that fell significantly short of analyst expectations. Revenue declined 25.1% year-over-year to $221.91 million and missed the consensus estimate of $294.3 million. The revenue drop was attributed to a decline in chassis shipments due to inconsistent delivery schedules from OEMs during Q4 2023
EPS came in at $0.91 and missed the $1.21 forecast. Gross margin improved slightly to 15.1%, but this did not offset the negative sentiment surrounding the results.
The company also issued weak guidance for 2025. It forecasts revenue between $950 million and $1 billion and EPS between $2.90 and $3.20. This is far below consensus estimates of $1.41 billion in revenue and $5.94 EPS.
The consensus price target of $82 implies 79.25% upside.
MLR stock is down 29.07% year-to-date.
12. REE Automotive Ltd (NASDAQ:REE)
Number of Hedge Fund Holders In Q4 2024: 5
REE Automotive Ltd (NASDAQ:REE) makes modular electric vehicle platforms that feature its REECorner technology. It integrates vehicle systems into compact modules located near each wheel.
The stock is down significantly so far in 2025 as it has been taking hits from the broader market sentiment turning sour on automotive stocks, especially ones that are involved in EVs.
Also, REE expects to start deliveries of scale-production vehicles in the first half of 2025, but there’s market uncertainty about their ability to meet these targets. Much like most EV startups, it is very capital-intensive.
The consensus price target of $14.5 implies 142.84% upside.
REE stock is down 31.71% year-to-date.
11. Cars.com Inc (NYSE:CARS)
Number of Hedge Fund Holders In Q4 2024: 25
Cars.com Inc (NYSE:CARS) is an online automotive marketplace.
The stock is down significantly so far in 2025 as the company posted weak Q1 and full-year 2025 guidance. Cars.com provided earnings guidance on February 27, 2025, projecting Q1 revenue between $178 million and $181 million.
This is consistent with the prior year but lacks significant growth. Full-year revenue was forecasted at $745 million to $755 million, but the growth here is modest, and investors were disappointed.
Furthermore, Cars.com acquired DealerClub for $25 million with potential performance-based payments of up to $88 million in January. This acquisition expanded Cars.com’s wholesale auction capabilities, though the upfront costs and integration risks spooked some investors.
The consensus price target of $20.5 implies 75.06% upside.
CARS stock is down 32.08% year-to-date.
10. ACV Auctions Inc (NASDAQ:ACVA)
Number of Hedge Fund Holders In Q4 2024: 35
ACV Auctions Inc (NASDAQ:ACVA) is a digital marketplace for wholesale vehicle transactions.
The stock is down significantly so far in 2025 as ACV Auctions reported weak fourth-quarter results, with full-year revenue and EBITDA guidance falling below Wall Street expectations.
The company cited a flat dealer wholesale market and deteriorating margins as key challenges.
During the same quarter, ACV Auctions experienced cash burn issues despite exceeding analysts’ EBITDA expectations.
The consensus price target of $23.05 implies 61.26% upside.
ACVA stock is down 33.08% year-to-date.
9. Monro Inc (NASDAQ:MNRO)
Number of Hedge Fund Holders In Q4 2024: 21
Monro Inc (NASDAQ:MNRO) is a retail tire and automotive repair company.
The stock is down significantly so far in 2025 due to the company’s weak financial performance. In Q3 FY2025, Monro’s sales fell 3.7% year-over-year to $305.8 million, and comparable store sales declined by 0.8%. Operating income dropped to $10 million from $21.4 million in the prior year, and diluted earnings per share fell to $0.15 from $0.38.
And this is on top of Q2 FY2025’s weak report, where sales declined 6.4% year-over-year to $301.4 million, with comparable store sales dropping by 5.8%.
Moreover, Monro has faced gross margin pressures in its tire segment. It saw a decline of 150 basis points year-over-year. Operating margins have also been under strain.
The consensus price target of $25.33 implies 55.23% upside.
MNRO stock is down 33.59% year-to-date.
8. Tesla Inc (NASDAQ:TSLA)
Number of Hedge Fund Holders In Q4 2024: 126
Tesla Inc (NASDAQ:TSLA) doesn’t really need an introduction as it is the biggest EV company in the U.S.
The stock is down significantly so far in 2025 due to weak global sales, particularly in China and Europe.
Many investors also think Elon Musk is over-investing his time in DOGE, neglecting Tesla and SpaceX. Elon Musk recently said he was running his companies with “great difficulty.” as he now has additional responsibilities.
On top of all that, Tesla experienced significantly lower sales in China and Europe at the start of the year.
The politicization of Tesla has led to attacks on Tesla cars, and this can also deter people from buying the cars.
Regardless, the stock was likely overvalued, and the decline is more of a reversion to the mean.
The consensus price target of $325.81 implies 31.71% upside.
TSLA stock is down 38.28% year-to-date.
7. Hyliion Holdings Corp (NYSE:HYLN)
Number of Hedge Fund Holders In Q4 2024: 13
Hyliion Holdings Corp (NYSE: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 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.
6. Solid Power Inc (NASDAQ:SLDP)
Number of Hedge Fund Holders In Q4 2024: 13
Solid Power Inc (NASDAQ:SLDP) is a solid-state battery technology company that focuses on electric vehicles.
The stock is down significantly so far in 2025 following a Q4 2024 earnings miss. Solid Power reported a Q4 2024 loss per share of $0.17 and missed analyst expectations by $0.04.
Revenue of $4.46 million exceeded analysts’ expectations by $0.61 million, but investors are spooked about the bottom-line disappointment, especially as Solid Power also projected a cash investment of $100-120 million for 2025.
Plus, the Chief Technology Officer sold 187,500 shares of the company’s stock.
The consensus price target of $2.67 implies 134.95% upside.
SLDP stock is down 39.42% year-to-date.
5. 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 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 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.
4. LiveWire Group Inc (NYSE:LVWR)
Number of Hedge Fund Holders In Q4 2024: 11
LiveWire Group Inc (NYSE:LVWR) makes electric motorcycles, parts, accessories, apparel, and electric balance bikes for kids.
The stock is down significantly so far in 2025, as LiveWire reported a consolidated net loss of $93.9 million for 2024. This is an improvement from $109.6 million in 2023 but still significant.
Consolidated revenue fell by 30% year-over-year to $26.6 million. Electric Motorcycle segment revenue declined by 27%, while STACYC segment revenue dropped by 31%. Unit sales of electric motorcycles decreased by 54% in Q4 compared to the prior year.
Also, the company’s cash and cash equivalents fell sharply from $167.9 million at the end of 2023 to $64.4 million at the end of 2024.
Moreover, LiveWire projected electric motorcycle sales of only 1,000 to 1,500 units for 2025 and an operating loss of $70-80 million.
The consensus price target of $7.25 implies 216.59% upside.
LVWR stock is down 52.18% year-to-date.
3. Lotus Technology Inc (NASDAQ:LOT)
Number of Hedge Fund Holders In Q4 2024: 11
Lotus Technology Inc (NASDAQ:LOT) is a battery electric lifestyle vehicle company. It also sells sports cars globally under the Lotus brand.
The stock is down significantly so far in 2025 as Lotus Technology missed delivery targets and reports showed weak demand.
It cited weak consumer demand in China and competitive pressures in Europe and the United States. This announcement led to a significant stock decline due to concerns about the company’s ability to meet its ambitious 2026 targets.
The consensus price target of $7 implies 341.64% upside.
LOT stock is down 56.23% year-to-date.
2. Innoviz Technologies Ltd (NASDAQ:INVZ)
Number of Hedge Fund Holders In Q4 2024: 11
Innoviz Technologies Ltd (NASDAQ:INVZ) makes automotive-grade LiDAR sensors and perception software.
The stock is down significantly so far in 2025 as there have been financial pressures and dilutive fundraising by the company.
Innoviz announced a $40 million registered direct offering and sold 28.8 million units at $1.39 per unit, each including a share and 0.8 warrants exercisable at $1.69. This led to a stock decline of over 20% due to concerns about shareholder dilution.
The consensus price target of $3.19 implies 394.43% upside.
INVZ stock is down 61.21% year-to-date.
1. SES AI Corp (NYSE:SES)
Number of Hedge Fund Holders In Q4 2024: 14
SES AI Corp (NYSE:SES) makes high-performance, AI-enhanced Lithium-Metal and Lithium-ion rechargeable batteries for applications.
The stock is down significantly so far in 2025 due to earnings challenges followed by an NYSE non-compliance notice this month.
SES AI received a notice from the New York Stock Exchange for failing to meet its minimum stock price requirement of $1.00 per share. The stock had been trading below this threshold for a consecutive 30-day period.
And in February, SES AI reported increased research and development expenditures in its latest quarterly earnings.
Also, growing concerns over security vulnerabilities in SES AI’s AI-enhanced battery technologies have raised investor skepticism.
The consensus price target of $1.25 implies 193.43% upside.
SES stock is down 80.48% year-to-date.
While we acknowledge the potential of SES 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 SES but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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