Ten mid-cap stocks were sold down on Monday, bucking a wider market optimism, amid the lack of catalysts to spark buying appetite, while investors continued to digest the firms’ own developments affecting their businesses.

The Dow Jones rose by only 0.32 percent, while the S&P 500 and the tech-heavy Nasdaq each inched up by 0.09 percent and 0.02 percent, respectively. Meanwhile, the 10 companies booked losses as high as 5 to 16 percent.

In this article, we list the names of the worst-performing stocks and detail the reasons behind their decline.

To come up with the list, we considered only the stocks with a $2 billion market capitalization and $5 million in trading volume.

10. Lucid Group, Inc. (NASDAQ:LCID)

Lucid Group dropped its share prices by 5.63 percent on Monday to close at $2.6899 apiece amid the absence of fresh catalysts to reignite investor enthusiasm.

Earlier this month, the company reported that its net loss attributable to shareholders grew by 6.9 percent to $731 million from the $684 million registered in the same period last year.

Revenues, however, increased by 36 percent to $235 million from $172 million year-on-year.

According to the company, it is on track to ramp up vehicle production to 20,000 units per year, more than double the 9,000 units delivered last year.

In the first quarter alone, Lucid Group Inc. (NASDAQ:LCID) delivered 3,109 units, translating to $235 million in sales.

“Lucid Gravity is beginning to arrive in more customers’ driveways and at our studios, and combined with our progress toward future initiatives, our company is well-positioned for future success,” said Lucid Group Inc. (NASDAQ:LCID) Interim CEO Marc Winterhoff.

9. Aurora Innovation, Inc. (NASDAQ:AUR)

Aurora Innovation dropped its share prices by 6.27 percent on Monday to end at $6.28 apiece as investor sentiment was dampened by its unexpected addition of human observers behind its driverless trucks.

Investors took the recent initiative negatively from a company that was widely optimistic and confident about its driverless trucks.

According to Aurora Innovation, Inc. (NASDAQ:AUR), one of its partners, PACCAR, requested human observers behind the wheel.

“PACCAR is a long-time partner and, after much consideration, we respected their request and are moving the observer, who had been riding in the back of some of our trips, from the back seat to the front seat,” it said.

Aurora Innovation, Inc. (NASDAQ:AUR) officially launched its driverless trucks in Texas earlier this month. According to the company, it began regular driverless customer deliveries between Dallas and Houston this week, completing more than 1,200 miles without a driver.

8. CAVA Group, Inc. (NYSE:CAVA)

CAVA Group extended its losing streak for a fourth straight day on Monday, shedding 6.97 percent to finish at $90.06 apiece, with investors appearing to have shunned the company’s impressive earnings performance and raised outlook for the rest of the year.

In its latest earnings release, CAVA Group, Inc. (NYSE:CAVA) said net income in the first quarter of the year jumped by 84 percent to $25.7 million from the $13.99 million registered in the same period last year due to higher operating performance coupled with an income tax benefit of $10.7 million related to equity-based compensation, which partially offset higher depreciation and amortization.

Revenues increased by 28 percent to $331.8 million from $259 million.

Buoyed by the promising figures, CAVA Group, Inc. (NYSE:CAVA) raised its full-year outlook for adjusted EBITDA, now pegged at between $152 million and $159 million as compared with the $150 million to $157 million previously.

7. First Solar, Inc. (NASDAQ:FSLR)

First Solar, Inc. (NASDAQ:FSLR) dropped its share prices for a third straight day on Monday, shedding 7.59 percent to end at $164.92 apiece following developments in the House of Representatives planning to end solar tax credits by the end of the year.

Late Sunday night, the House Budget Committee approved a measure to eliminate the 30-percent residential solar tax credit by year-end, which forms part of the GOP’s budget reconciliation bill.

The news became a major blow to approximately 300 solar companies, including First Solar, Inc. (NASDAQ:FSLR), as well as customers who continue to claim 30 percent of installation costs as a credit on federal tax bills through 2032.

Despite earning the approval of both the House Ways and Means Committee and the Budget Committee, the bill still needs to be finalized and fully approved by both chambers before the president signs it into law.

6. AST SpaceMobile, Inc. (NASDAQ:ASTS)

AST SpaceMobile declined by 7.69 percent on Monday to end at $24.61 apiece amid the lack of fresh catalyst to boost investment appetite, as investors soured on its mixed earnings performance in the first quarter of the year.

In its earnings release, net loss attributable to shareholders expanded by 132 percent to $45.7 million from $19.7 million registered in the same period last year.

Revenues, on the other hand, increased by 43.6 percent to $718,000 from $500,000 year-on-year.

Total operating expenses also grew by 13.7 percent to $63.68 million from $56 million in the same comparable period.

Looking ahead, AST SpaceMobile, Inc. (NASDAQ:ASTS) expects to realize revenues between $50 million and $75 million from its Advanced SpaceMobile network commercialization efforts in the second half of the year.

“Today, we are at an inflection point for the company. We have ramped up manufacturing capacity and are now able to announce our plans to support five scheduled orbital launches over the next six to nine months. Commercially, we have also expanded our U.S. Government opportunity and are in a position to start generating meaningful revenue during 2025,” said AST SpaceMobile, Inc. (NASDAQ:ASTS) Chairman and CEO Abel Avellan.

5. Sunrun Inc. (NASDAQ:RUN)

Sunrun dropped for a second day on Monday, losing 7.84 percent to close at $11.29 apiece as investor sentiment was dampened by the possibility of solar tax credits ending by the end of the year.

Late Sunday night, the House Budget Committee approved a measure to eliminate the 30-percent residential solar tax credit by year-end, which forms part of the GOP’s budget reconciliation bill.

The news was a major blow to Sunrun Inc. (NASDAQ:RUN), as well as hundreds of other solar companies in the US, which have already been battered by a lukewarm reception from President Donald Trump.

Despite earning the approval of both the House Ways and Means Committee and the Budget Committee, the bill still needs to be finalized and fully approved by both chambers before the president signs it into law.

In the first quarter of the year, Sunrun Inc. (NASDAQ:RUN) swung to a net income attributable to shareholders of $50 million from an $87.8-million net loss in the same period last year.

Revenues increased by 10 percent to $504 million from $458 million year-on-year.

4. SoundHound AI, Inc. (NASDAQ:SOUN)

SoundHound AI declined by 8.22 percent on Monday to end at $10.27 apiece following the revival of a class action lawsuit alleging the company of making materially false information.

Shareholder law firms revived their own notifications on Monday, encouraging investors who lost money from their SoundHound AI, Inc. (NASDAQ:SOUN) stocks between May 10, 2024 and March 3, 2025 to approach them and lead as plaintiff in the lawsuit.

The case stemmed from SoundHound AI, Inc.’s (NASDAQ:SOUN) announcement on March 4 that it was unable to file its annual report for 2024 due to the complexity of accounting for the SYNQ3 and Amelia acquisitions.

The company said it required additional time to prepare financial statements and accompanying notes and that it had identified material weaknesses in its internal control over financial reporting.

Subsequently, on March 11, the AI firm said that it “did not design and maintain effective controls related to the identification of and accounting for certain non-routine, unusual or complex transactions, including the accounting for complex financing transactions and acquisitions.”

3. Pony AI Inc. (NASDAQ:PONY)

Pony AI dropped its share prices by 8.25 percent on Monday to close at $16.91 apiece as investors repositioned portfolios ahead of the release of its first quarter earnings performance.

In a statement, Pony AI Inc. (NASDAQ:PONY) said that it will report its earnings results before the US market opens on Tuesday, May 20.

In recent news, one of the company’s robotaxis caught fire during a routine road test following a system malfunction. The news sparked investor concerns about the safety of autonomous driving technologies.

The robotaxi reportedly left the roadway and was later captured blazing.

According to Pony AI Inc. (NASDAQ:PONY), the fire detected an “abnormal status” during operation and immediately triggered its safety protection mechanism, leading the vehicle to a full stop.

Meanwhile, the company officially filed its intention to list publicly on the Hong Kong Stock Exchange, as Chinese firms seek to find a backup plan over fears that the trade war between the US and China could force their delisting from US stock exchanges.

2. Archer Aviation Inc. (NYSE:ACHR)

Archer Aviation snapped an eight-day winning streak on Monday, slashing 14.36 percent to end at $11.39 apiece as investors resorted to profit-taking to take advantage of the recent price surge.

Last week, Archer Aviation Inc. (NYSE:ACHR) surged following news that it was tapped as the official air taxi partner of the 2028 Los Angeles Summer Olympics and Paralympic Games.

During the games, Archer Aviation Inc. (NYSE:ACHR) is set to feature its fleet of electric vertical takeoff and landing (eVTOL) aircraft, including the Midnight model, which can accommodate up to four passengers.

However, the aircraft has yet to secure the green light of the US Federal Aviation Administration (FAA). Archer Aviation Inc. (NYSE:ACHR) said it expects to receive the certification by the end of the year.

Once its air taxis kick off commercial operations, users are expected to be able to hail an air taxi through an application.

Archer Aviation Inc. (NYSE:ACHR) expects to launch its Midnight model in the UAE in the next few months, for its planned launch later this year.

1. QuantumScape Corporation (NYSE:QS)

QuantumScape Corporation fell by 16.07 percent on Monday to end at $3.97 each as investors sold off positions following reports that giant carmaker General Motors is lobbying against electric vehicle-friendly laws in California.

“We need your help!” GM reportedly sent an email to its employees. “Emissions standards that are not aligned with market realities pose a serious threat to our business by undermining consumer choice and vehicle affordability.”

The report helped dampen the prices of shares in QuantumScape Corporation (NYSE:QS), a company specializing in the production of solid-state battery technologies.

In recent news, QuantumScape Corporation (NYSE:QS) named Luca Fasoli as its new chief operating officer. Before joining QuantumScape Corporation (NYSE:QS), he held key leadership positions at Western Digital (NASDAQ: WDC), including Senior Vice President of Memory Productization, where he guided the global transition of 3D NAND Flash technology from development to production across multiple international sites.

He also spent a decade at SanDisk Corporation (NASDAQ: SNDK), serving in pivotal roles such as Vice President of Product Development, Senior Director of the Intelligent Memory System, and Senior Director of Product Development.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.