E-bike company Fly-E Group FLYE is facing severe allegations of being a “pump-and-dump” scheme on the verge of a stock collapse, according to a new report that also highlights the company's history of selling batteries without safety certifications that have been linked to deadly fires.
Check out FLYE’s stock price over here.
At Risk Of A Near-Term, ‘Severe Stock Collapse’
In a scathing post published Wednesday, Edwin Dorsey‘s investment newsletter ‘The Bear Cave’ warned that Fly-E's stock “is being manipulated by overseas stock scammers… and is at risk of a near-term, severe stock collapse.”
The report, authored by Dorsey, alleges the company not only poses a danger to investors but also “produces products that endanger the safety of all New Yorkers.”
Fly-E did not immediately respond to Benzinga’s request for comment.
Fatal Fire Incidents Reported Linked To Fly-E’s Batteries
The report cites investigations by non-profit Streetsblog that link Fly-E products to several fatal lithium-ion battery fires in New York City, including one in January 2021 and another in March 2023 that killed residents in the Bronx.
Fly-E, which primarily sells e-bikes to food delivery workers, has also faced significant regulatory scrutiny. According to The Bear Cave, New York's Department of Consumer & Worker Protection has issued 77 violations at Fly-E shops for “selling batteries without safety certifications.”
Certification And Testing Firm Sues Fly-E
Further compounding the safety concerns, safety certification company UL Solutions sued Fly-E in March 2025, alleging the company falsely advertised its products as “UL Certified.”
That lawsuit was settled two months ago for $1 million, with Fly-E ordered to stop misrepresenting its products as certified by UL. The Bear Cave's report concludes by urging regulators to act before more investors and residents are harmed.
Price Action
Fly-E Group stock rose 0.13% on Wednesday and advanced by 2.53% in after-hours. In premarket on Thursday the shares were down 0.67%. On a year-to-date basis, the stock has risen by 90.84%, whereas it was up 48.51% over the last year.
Benzinga's Edge Stock Rankings indicate that FLYE maintains a stronger price trend in the short, medium, and long terms. However, the stock scores moderately on value rankings. Additional performance details are available here.
The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, were down in premarket on Thursday. The SPY was down 0.039% at $644.64, while the QQQ declined 0.041% to $580.10, according to Benzinga Pro data.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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