Shares of Chinese EV maker Kandi down after short-seller report

Kandi Technologies

30/11/2020 17:11

Nov 30 (Reuters) - Shares of Kandi Technologies Group Inc
 KNDI.O  fell more than 19% on Monday, after the short-selling
research house Hindenburg alleged that the Chinese electric
vehicle maker used fake sales to take money from U.S. investors.
    Kandi did not immediately comment on Hindenburg's report. (https://bit.ly/3luc2zC)
    In the report, Hindenburg accused the company of falsifying
"revenue using fake sales to undisclosed affiliates."
    "The company's largest customer, representing ~55% of last
twelve months (LTM) sales, shares a phone number with a Kandi
subsidiary, and shared an executive with Kandi," the report
said.
    In September, the short-seller had published a scathing
report on Nikola Corp  NKLA.O  alleging that the electric
truckmaker misled investors over its technology, a charge that
the company denied.  urn:newsml:reuters.com:*:nL4N2GC35H
    Kandi's shares, like many of its peers in the EV industry,
have rallied in recent quarters. The stock has nearly tripled in
value this year.

 (Reporting by Subrat Patnaik in Bengaluru; Editing by Shailesh
Kuber)
 ((subrat.patnaik@tr.com; Twitter: @Subrat_Patnaik;))