Aurora Innovation Plummets 7.7% Amid Bearish Short Report and Volatile Market Sentiment

Summary
• Aurora Innovation (NASDAQ:AUR) tumbles 7.7% to $5.9435, its lowest since March 2025
• Kerrisdale Capital’s bearish short report questions commercial viability of autonomous trucking
• Intraday range of $5.90–$6.24 highlights sharp selloff amid high turnover of 37.46 million shares
• Sector peers like Alphabet (GOOGL) also dip, signaling broader tech sector caution

Aurora Innovation’s stock is under intense pressure as a bearish short report from Kerrisdale Capital triggers a sharp intraday selloff. The stock’s 7.7% decline to $5.9435 reflects investor skepticism over the company’s commercial model and regulatory hurdles. With the Auto Components sector showing mixed momentum and high volatility, traders are recalibrating positions ahead of key technical levels and options expiration on August 29.

Kerrisdale Capital’s Bearish Thesis Undermines Investor Confidence
Aurora’s selloff is directly tied to Kerrisdale Capital’s short report, which argues the company’s autonomous trucking model is economically unviable. The report highlights insurmountable challenges in scaling hub-and-spoke operations, infrastructure dependencies, and cost overruns compared to manned trucks. These concerns have amplified existing doubts about Aurora’s $13 billion market cap versus its $10 billion estimated addressable market. The bearish narrative has triggered profit-taking and short-covering, exacerbating the intraday decline.

Auto Components Sector Sinks as Alphabet (GOOGL) Drags Tech Stocks Lower
The Auto Components sector is broadly underperforming, with Alphabet (GOOGL) down 0.97% as tech stocks face profit-taking. Aurora’s 7.7% drop outpaces the sector’s average decline, reflecting its speculative nature and exposure to regulatory and commercial risks. While Alphabet’s AI-driven autonomous vehicle initiatives remain in focus, Aurora’s lack of profitability and high cash burn make it a laggard in the sector’s near-term outlook.

Options and ETF Plays for Volatility Amid Key Technical Levels
• 200-day MA: $6.5174 (above) • 30-day MA: $6.0523 (below) • RSI: 62.98 (neutral) • MACD: 0.1578 (bullish) • Bollinger Bands: $5.677–$6.728 • Support/Resistance: $6.15–$6.34

Aurora’s price action is testing critical support at $5.90, with the 200-day MA acting as a key resistance. The RSI at 62.98 suggests neutral momentum, while the MACD histogram’s positive divergence hints at potential short-term bounces. Traders should monitor the $6.00–$6.20 range for directional clarity. The leveraged ETF data is unavailable, but sector-linked plays like XLK or XLF could offer indirect exposure to tech and auto components.

Top Options Picks:
• AUR20250829P5.5 (Put):
- Strike: $5.50 • Expiry: 2025-08-29 • IV: 67.60% • Leverage: 59.45% • Delta: -0.23 • Theta: -0.0038 • Gamma: 0.437 • Turnover: 1891
- High leverage and gamma make this put ideal for a 5% downside scenario. Projected payoff: $0.4435 (max gain if AUR hits $5.50).
• AUR20250919P6 (Put):
- Strike: $6.00 • Expiry: 2025-09-19 • IV: 63.10% • Leverage: 12.92% • Delta: -0.47 • Theta: -0.0025 • Gamma: 0.358 • Turnover: 33,048
- High liquidity and moderate delta position this as a safer short-term bearish play. Projected payoff: $0.0565 (if AUR drops to $5.90).

Action Insight: Aggressive bears should prioritize AUR20250829P5.5 for a sharp move below $5.90, while AUR20250919P6 offers a balanced bet for a mid-September breakdown. Watch for volume spikes near $6.00 to confirm trend continuation.

Backtest Aurora Innovation Stock Performance
The performance of AUR after an intraday plunge of at least -8% was backtested over a period from August 19, 2020, to July 19, 2025. The results showed no impact of the event on the overall market, with the maximum return during the backtest period being 5.18% on day 59.

Aurora at Crossroads: Break Below $5.90 Could Trigger Deep Correction
Aurora’s sharp decline reflects a critical juncture for the stock, with Kerrisdale’s bearish thesis amplifying existing commercial and regulatory risks. The $5.90 level is now pivotal—breaking below could accelerate the selloff toward the 52W low of $3.81. Traders should monitor the 200-day MA at $6.5174 for a potential rebound, but the bearish case remains intact without a catalyst like a major partnership or regulatory breakthrough. Meanwhile, Alphabet (GOOGL)’s -0.97% move underscores broader tech sector caution. Investors should brace for volatility and consider short-dated puts for downside protection. Watch for $5.90 breakdown or regulatory reaction.