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 SES AI Corporation (NYSE:SES) 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.
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 line of electric vehicles being produced in a Massachusetts-based production facility.
Number of Hedge Fund Holders In Q4 2024: 14
SES AI Corporation (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 (NYSE:SES) 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 (NYSE:SES) 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.
Overall, SES ranks 1st on our list of automotive stocks that have been plunging in 2025. 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.
