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Chinese EV Stock Kandi Technologies Plunges On Hindenburg Short Report

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Chinese EV Stock Kandi Technologies Plunges On Hindenburg Short Report

Hidenburg Research is best known of late for its short report on Nikola Corporation (NASDAQ: NKLA), saying the company falsified a video showing the company's hydrogen power SUV driving when it in fact was simply rolling down a hill with the help of gravity.

Now Hindenburg has set its sites on Kandi Technologies Group Inc (NASDAQ: KNDI), saying the company has used fake sales and the recent electric vehicle hype to steal $160 million from U.S. investors.

Benzinga has reached out to Kandi Technologies for comment on the short report. 

Hindenburg included a bulletpoint list of why it said Kandi is overvalued. Hindenburg said it investigated Kandi at factory locations in China and interviewed former employees and business partners.

Click here to check out Benzinga's EV Hub for the latest electric vehicles news.

Hidenburg said it found that almost 64% of Kandi’s sales over the last 12 months have been to undisclosed related parties. 

Kandi’s largest customer shares a phone number with a Kandi subsidiary, and shared an executive with Kandi, the short report said.

Hindenburg said it visited this customer and found it is based in a tiny building next to Kandi’s factory with a sign indicating that it’s a Kandi company.

Hindenburg said it has taken a short position on Kandi, adding that this is an opinion and encouraging investors to do their own research.

KNDI Price Action: Kandi Technologies shares were down 24.23% at $10.32 at last check Monday. 

Photo by Jengtingchen via Wikimedia

 

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