Hesai Group is experiencing a severe stock price decline that starkly contrasts with its robust operational metrics. Despite reporting record-breaking lidar deliveries and securing an exclusive major contract with Li Auto, the company’s shares have suffered dramatic losses in recent trading sessions. This divergence between fundamental strength and market performance raises important questions about investor sentiment.
Institutional Investors Show Divided Sentiment
The investment community appears deeply divided on Hesai’s prospects. Mitsubishi UFJ substantially reduced its stake by 63.3%, while other significant players including Vontobel, Acadian Asset Management, and J. Safra Sarasin aggressively expanded their positions. Institutional ownership remains substantial at 48.53%, yet the contrasting strategies highlight uncertainty about the company’s direction.
The recent exclusive lidar supply agreement for all next-generation Li Auto models represents a significant coup for Hesai. This development prompted Goldman Sachs, Morgan Stanley, and UBS to express confidence in the company’s outlook, raising their price targets to as high as $36.00.
Quarterly Results Present Mixed Picture
Hesai’s most recent quarterly report reveals both strengths and challenges. The company exceeded earnings per share expectations dramatically, reporting $0.25 compared to projections of $0.11, demonstrating operational efficiency. However, revenue of $111.70 million fell short of the $116.11 million forecast.
Other key performance indicators showed remarkable strength:
* Net revenue growth increased 47.5% year-over-year
* Lidar unit deliveries reached 441,398, representing 228.9% growth
* Gross margin remained stable at 42%
* Net income of $36.0 million has already surpassed the full-year target
Should investors sell immediately? Or is it worth buying Hesai Group?
Despite these achievements, market experts have slightly reduced their 2026 projections, potentially indicating growing caution about the company’s medium-term outlook.
Technical Indicators Signal Sustained Downtrend
Technical analysis paints a concerning picture for Hesai’s stock trajectory. Following an 8.2% decline on Friday, the downward movement continued with additional losses of 1.01%. Cumulatively, the equity has shed 17.45% of its value within just ten trading sessions.
Key technical levels show:
* Current trading price sits significantly below all major moving averages
* The 50-day average at $25.46 remains far above present levels
* The 200-day average at $22.58 confirms the persistent bearish trend
The stock now trades substantially below average analyst price targets, highlighting the disconnect between short-term market sentiment and longer-term fundamental expectations.
The central question for investors remains: when will the company’s operational achievements and strategic wins translate into share price appreciation?
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