Why Nio Stock Suddenly Reversed Today
After opening in the green this morning, Nio (NYSE: NIO) stock dropped sharply after 10:30 a.m. ET and hit a low of 4.1% by 10:54 a.m. ET. A short-seller attack is to blame for the electric vehicle (EV) stock's reversal today.
Tuesday morning, Grizzly Research, which claims to do "in-depth due diligence" of publicly traded companies to produce "differentiated" research, alleged Nio of using an "audacious scheme" to inflate revenue and profitability.
In its short-seller report, Grizzly Research raised several allegations against Nio. Among other things, it primarily believes Nio has used Wuhan Weineng, a third party, to inflate its numbers and beat the already lofty analyst estimates.
Source Fool.com
