Why Did Senmiao Technology Plunge 14.73%?

On September 4, 2025, Senmiao Technology experienced a significant drop of 14.73% in pre-market trading, catching investors off guard.

Senmiao Technology has recently seen dramatic price movements, with a notable surge of over 100% in a single day. This volatility has raised questions among investors, as there were no major fundamental announcements to justify such a sharp increase. The high trading volume suggests a liquidity event, but the lack of sector alignment or block trading data makes it difficult to confirm institutional involvement.

Analysts have cautioned about the volatility in micro-cap stocks like Senmiao Technology, advising investors to monitor the situation closely to assess the sustainability of these sharp, unexplained moves. The micro-cap size and low float of Senmiao Technology make it a potential target for short squeezes or retail-driven momentum plays, driven by rapid retail or algorithmic buying.

Despite the recent surge, Senmiao Technology's price movements do not appear to be aligned with broader sector trends, indicating that the rally is likely idiosyncratic rather than part of a broader thematic trade or sector rotation. Investors should remain cautious, as such sharp moves in micro-caps can be volatile and short-lived. Further monitoring is recommended to determine whether the rally is sustainable or a temporary flash.