Hesai Group's stock (HESAI-W) plummeted 8.15% in pre-market trading on Wednesday, following negative analyst sentiment regarding the company's outlook.

The decline comes after Citi lowered its price target on Hesai to $28.60 from $33, while maintaining a Buy rating on the shares. This downward revision in valuation contributed to the stock's significant drop at the market open.

Additionally, while Hesai recently reported first-quarter earnings that beat analyst expectations, the earnings summary revealed that the mean earnings estimate of analysts had fallen by approximately 51.1% over the last three months, indicating underlying concerns about future profitability that may have influenced investor sentiment.