Hesai-W's stock plummeted 5.34% during intraday trading on Thursday, driven by investor concerns following the company's latest quarterly results and broader pressures in the automotive sector.

The decline was primarily attributed to the company's Q1 financial performance, which showed a gross margin contraction from 41.7% to 39.1% despite significant growth in LiDAR shipments. Although shipments surged 140.9% year-over-year to 471,723 units, total revenue increased only 29.6% to RMB 681 million, indicating a sharp decline in the average selling price (ASP) for its products.

Management cited a shift in product mix toward lower-priced ADAS LiDAR systems as a key factor behind the ASP pressure, reflecting intensifying competition within China's automotive industry. The stock was further weighed down by broad weakness across the auto parts sector, with several major peers also experiencing significant declines during the same trading session.