Nio (NIO) Forms Independent Panel to Investigate Grizzly Short Selling Report
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Electric vehicle makers Nio Inc. (NYSE: NIO) announced on Monday that the company has decided to “form an independent committee” to oversee an investigation into a recent short-selling report by Grizzly Research.
On June 28, Grizzly Research released a report titled, “We Believe NIO is Playing Valeant-esque Accounting Games to Inflate Revenues and Increase Net Income Margins to Meet Goals.” The report alleges that Nio is using Wuhan Weineng, a battery asset company formed by Nio along with other investors, to artificially inflate revenue and net profit by up to 10% and 95% respectively.
The electric vehicle maker responded the next day after saying the report “contains numerous errors, unsubstantiated speculation and misleading conclusions and interpretations”.
“The Independent Committee has engaged independent professional advisers to assist with the independent investigation, including an international law firm and a reputable accounting firm,” the company added.
In addition, NIO also reiterated its “continuing and unwavering commitment to maintaining high standards of corporate governance and internal control, as well as transparent and timely disclosure in accordance with applicable rules and regulations.”
By Michael Elkin