Why Did Ezgo Technologies Plunge 34.12%?

On August 4, 2025, Ezgo Technologies experienced a significant drop of 34.12% in pre-market trading, marking a notable decline in its share price.

Ezgo Technologies has seen a substantial 55% gain in its share price over the past month, recovering from previous weaknesses. However, this recent surge has not been enough to offset the 54% decline in share price over the past year. The company's price-to-sales (P/S) ratio of 0.1x remains relatively low compared to the broader auto industry in the United States, where many companies have P/S ratios above 1.2x and even above 5x.

Despite the recent price surge, Ezgo Technologies' P/S ratio remains below the industry median. This suggests that investors may not be optimistic about the company's future revenue growth prospects. The company's revenue has shown strong recent growth, but its longer-term performance has been less impressive, with three-year revenue growth being relatively stagnant. This has likely contributed to the low P/S ratio and may continue to be a barrier for the share price.

Investors should be mindful of the potential risks associated with Ezgo Technologies, including its unstable medium-term growth rates and the possibility of further declines in share price. While the recent price surge is encouraging, it is important to consider the broader context of the company's financial performance and industry trends before making any investment decisions.