Chinese EV maker Nio denies accusations of inflating profit as stock tumbles

Shares of Nio Inc. plunged on Wednesday after a notorious US short-seller alleged that the Chinese electric-vehicle maker was exaggerating its revenue and profitability by selling to a related company.

In a report released late Tuesday, Grizzly Research LLC claimed that the startup used a battery asset management affiliate to help inflate its revenue and net income by 10% and 95%, respectively, in the first nine months of 2021.

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