EHang Holdings Ltd (NASDAQ: EH), a leading autonomous aerial vehicle (AAV) technology company, saw its stock price nosedive 9.73% in pre-market trading, extending losses from the previous session. The sharp decline comes on the heels of the company's disappointing first-quarter 2025 financial results released on Monday.

EHang's Q1 2025 earnings report revealed significant challenges for the company. The adjusted loss widened to 0.42 yuan per share, compared to a 0.14 yuan loss per share in the same quarter last year. More alarmingly, EHang's revenue plummeted by 57.5% year-over-year to just 26.09 million yuan ($3.60 million), falling far short of analyst expectations of 150.94 million yuan. This substantial revenue miss has raised concerns among investors about the company's near-term growth prospects in the emerging AAV market.

Despite the negative quarterly performance, Wall Street maintains a cautiously optimistic outlook on EHang, with a consensus "buy" rating and a median 12-month price target of 28.01 yuan. However, investors appear to be reassessing their positions in light of the company's current challenges. The pre-market plunge follows Monday's 5.66% drop, bringing EHang's total decline to over 15% in just two trading sessions. As EHang continues to navigate the complexities of the AAV industry, all eyes will be on its ability to reverse the revenue decline and narrow its losses in the coming quarters.