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(Updates with comments from Ehang)
NEW YORK, Feb. 16 (Reuters) – Shares of drone maker EHang Holdings Ltd plunged Tuesday after an investment research firm said it short-circuited the stock and questioned the accuracy of what the Chinese company had said about its business.
Shares of Guangzhou, China-based EHang closed 62.7% at $ 46.30 on the Nasdaq.
Wolfpack Research, which specializes in short selling, or betting stocks will drop, said EHang was “an elaborate stock promotion” and the producer of unmanned aerial vehicle technology had lied about its products. , its manufacturing, its revenues and its partnerships.
In response, EHang said the Wolfpack report contains “many errors, unsubstantiated statements and misinterpretation of information.”
The drone maker also said it complies with regulations from the U.S. Securities and Exchange Commission and the Nasdaq.
EHang’s stock had gone from around $ 13 per share in early December to $ 124.09 on Friday. The stock made its US debut in December 2019 after an initial public offering priced at $ 12.50 per share. (Reporting by Herbert Lash in New York and Juby Babu in Bengaluru; Editing by Dan Grebler, David Gregorio and DDevika Syamnath)
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