NIO Says Short-Seller Report ‘Without Merit.’ The Stock Slumps.

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NIO denied accounting allegations in a report by short-seller Grizzly Research.

Qilai Shen/Bloomberg


stock dropped more than 12% in Hong Kong on Wednesday after the company denied a report published by short-seller Grizzly Research claiming that the Chinese electric-vehicle maker is exaggerating revenue and profit margin.

In its report on Tuesday, Grizzly Research said that NIO (ticker: NIO) is playing “accounting games to inflate revenue and boost net income margins to meet targets.”

In response, NIO said in a statement that the report “is without merit and contains numerous errors, unsupported speculations and misleading conclusions and interpretations regarding information relating to the company.”

Shares in NIO fell 12.1% in Hong Kong on Wednesday to 164.10 Hong Kong dollars (US$20.19). In U.S. premarket trading, American depositary receipts of NIO dropped 5.8%.

NIO added that it was reviewing the allegations and considering an appropriate course of action to protect shareholders’ interest, and will make additional disclosures in due course.

Write to Lina Saigol at

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