(Nio) Shares of Nio Inc. fell more than 6% on Wednesday, a day after reports emerged claiming short-selling by the electric vehicle maker. The company has since refused the claims.
A report by Grizzly Research on Tuesday claimed that Nio was playing a Valeant-like accounting game. The report indicated that Nio was inflating its revenue and boosting earning margins to achieve its goal.
The report further stated that Nio was likely collaborating with an unconsolidated related party, Wuhan Weineng, to manipulate the accounting figures.
Nio has defended itself, saying the report is without merit and contains numerous errors. The EV maker says the report contains unsupported speculations and misleads in its interpretations and conclusions.
The Chinese EV maker further states that its board and audit committee is reviewing the allegations and is seeking an appropriate course of action to protect the shareholders’ interests.
Nio promised to make additional disclosures in due course, reiterating its commitment to high standards of corporate governance and internal controls.
NIO:NYSE is down -6.75%.
