(Reuters) – Shares of Kandi Technologies Group Inc fell more than 19% on Monday, after the short-selling research house Hindenburg alleged that the Chinese electric vehicle maker used fake sales to take money from U.S. investors.
Kandi did not immediately comment on Hindenburg’s report.
In the report, Hindenburg accused the company of falsifying “revenue using fake sales to undisclosed affiliates.”
“The company’s largest customer, representing ~55% of last twelve months (LTM) sales, shares a phone number with a Kandi subsidiary, and shared an executive with Kandi,” the report said.
In September, the short-seller had published a scathing report on Nikola Corp alleging that the electric truckmaker misled investors over its technology, a charge that the company denied.
Kandi’s shares, like many of its peers in the EV industry, have rallied in recent quarters. The stock has nearly tripled in value this year.
Reporting by Subrat Patnaik in Bengaluru; Editing by Shailesh Kuber