RoboSense's stock plummeted 5.23% during intraday trading on Thursday, following the release of its first-quarter earnings results which showed a contraction in gross margins.

The company reported that its gross margin fell to 21.7% from 23.5% a year earlier, primarily due to higher manufacturing costs from the ramp-up of its next-generation EMX LiDAR product line and reduced capacity utilization in its automotive segment.

This margin pressure triggered profit-taking by investors, as the stock had previously rallied approximately 5% on May 21 after Morgan Stanley included RoboSense in its Global Humanoid Robot Top 100 list. Management expressed confidence that proprietary SoC chip deployment would drive margin recovery in coming quarters despite current challenges.