Why Albemarle Corp (ALB) is Plunging in 2025?

We recently published a list of Why These 15 Electric Vehicle Stocks Are Plunging in 2025. In this article, we are going to take a look at where Albemarle Corp (NYSE:ALB) stands against other electric vehicle stocks that are plunging in 2025.

The electric vehicle sector surged in popularity during the immediate post-COVID era as investors poured money into what seemed like the future of transportation. Back then, the promise of a green revolution fueled sky-high valuations and bold predictions. But that enthusiasm has since fizzled. Most electric vehicle stocks have plunged significantly and delivered consistent losses to shareholders.

Tesla seems to be the only company capable of selling electric vehicles in the West profitably, but even that company has been under tremendous pressure due to the politicization of its brand.

After Trump’s election, things look even bleaker for these companies and many of them are plunging. That said, many analysts now think that there are buying opportunities here, especially as a large portion of Tesla customers who previously would’ve bought Teslas are now likely to buy alternative EVs. Trump may also be softer than previously thought on EVs, as EV subsidies are still in place. It’s a good idea to take a look at the EV stocks that have been sold off the most so far this year.

Methodology

For this article, I screened the worst-performing electric vehicle stocks year-to-date.

I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Albemarle Corp (NYSE:ALB)

Number of Hedge Fund Holders In Q4 2024: 36

Albemarle Corp (NYSE:ALB) is a specialty chemicals manufacturer. The company is mainly known for its lithium business.

The stock is down significantly so far in 2025 due to the sharp drop in lithium prices, which have fallen from their peak levels in late 2022 to cyclical lows.

This decline is driven by reduced demand for energy storage solutions and electric vehicles (EVs), as well as increased competition and supply in the lithium market.

Moreover, Albemarle reported disappointing financial results for the fourth quarter of 2024. This included a 48% year-over-year revenue decline to $1.23 billion and an adjusted loss of $1.09 per share, which missed analyst expectations.

Plus, Albemarle announced plans to cut its 2025 capital expenditures by over 50% compared to 2024 levels. It aims to achieve breakeven-free cash flow by the end of the year.

The consensus price target of $104.30 implies 45.43% upside.

ALB stock is down 16.57% year-to-date.

Overall, ALB ranks 15th on our list of electric vehicle stocks that are plunging in 2025. While we acknowledge the potential of ALB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ALB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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

Disclosure: None. This article is originally published at Insider Monkey.