Shares of Hesai Group (NASDAQ: HSAI) tumbled 5.08% in Wednesday's trading session following the company's first-quarter earnings report and second-quarter guidance that fell short of market expectations. The LiDAR technology provider's stock decline comes amid concerns over near-term revenue impacts from tariffs and shifting customer demand.

During the earnings call, Hesai's management provided second-quarter revenue guidance of RMB 680-720 million ($93.7-99.2 million), representing year-over-year growth of 48-57%. However, this outlook accounts for potential impacts from evolving tariff situations and some U.S.-bound robotics LiDAR shipments shifting from Q2 to Q3. CFO Andrew Fan stated, "We have seen some customers front-load or reschedule their orders due to the uncertainty around future policy changes, especially after April."

While Hesai maintained its full-year 2025 revenue guidance of RMB 3-3.5 billion, investors appeared concerned about near-term headwinds and competitive pressures. The company addressed speculation about potential customer losses, with CEO David Li emphasizing the high barriers for competitors to displace Hesai as an incumbent supplier. However, the stock's sharp decline suggests the market remains cautious about Hesai's ability to maintain its market leadership and profitability targets in an increasingly competitive landscape.