Yahoo Finance Live anchors discuss reports of Nio inflating its revenue and profit.
Video Transcript
– Then shares of Chinese EV maker NIO, they are moving lower here today by about 4% this morning after the company denied a report published Tuesday by short-seller Grizzly Research claiming that the company is exaggerating revenue and profit margins. NIO responded to the report by saying it is without merit and contains numerous errors, unsupported speculations, and misleading calculations and interpretations regarding information relating to the company here. This one got you–
– I’m still digging through this because, look, as a former analyst this is great [? branding. ?] Of course, if you are Grizzly Research, you’re not coming up probably with a bullish report. But look, this is very extensive research, not unlike research we’ve seen from other short-sellers, let’s say a Carson Block, et cetera. I’m still diving into this. But again, it bears watching moving forward.
– Yeah, the rejection– you know, NIO’s pushback against this doesn’t seem to– we’ll see how these things play out. Usually it takes a while kind of for the back and forth to continue.
– There’s a general distrust still in some of these Chinese-focused companies.
– Well, and some of the execs too.
– Look at Luckin brands.
– Right.
– That was a real disaster story a couple of years ago.
– That’s exactly what was pulled into this report too. NIO’s chairman and CEO [? Bin ?] Li closely tied to Joy Capital and Party Central to Luckin Coffee fraud is what they– well, was what it was– being hailed as the Elon Musk of China. Li’s past ventures have seen their stocks collapse and been taken private at a fraction of their peak valuations also brought up in this Grizzly–
– Grizzly Research.
– –Research.