EHang Holdings Ltd (NASDAQ: EH), a leader in autonomous aerial vehicle (AAV) technology, saw its stock price plummet 5.66% in Monday's trading session following the release of its first-quarter 2025 financial results. The significant drop reflects investor concerns over the company's widening losses and sharp revenue decline.

According to the earnings report, EHang posted a quarterly adjusted loss of 0.42 yuan per share, compared to a loss of 0.14 yuan per share in the same quarter last year. While this beat the lone analyst forecast of a 1.06 yuan per share loss, the company's revenue performance was less encouraging. EHang reported a substantial 57.5% year-over-year decrease in revenue, with Q1 2025 sales coming in at just 26.09 million yuan ($3.60 million), far below analyst expectations of 150.94 million yuan.

Despite the disappointing results, Wall Street maintains an overall positive outlook on EHang. The current average analyst rating on the shares is "buy," with a median 12-month price target of $28.01. This optimism suggests that while short-term challenges are evident, analysts believe in the company's long-term potential in the emerging AAV market. However, investors will be closely watching EHang's future performance to see if the company can reverse its recent trend of widening losses and declining revenues.