Grizzly Research, a foreign short-selling agency, recently released a short report against NIO, and the main arguments focused on The BaaS battery rental related:
1. The Grizzlies believe that since the establishment of WEINENG at the end of 2020, its unincorporated relationship with NIO has inflated the latter's revenue by 10% and net profit by 95%, of which "at least 60% of the profit growth in fiscal 2021 will be contributed by WEIN".
2. Regarding the specific revenue/net profit inflated mechanism, the Grizzly Bear believes that NIO "oversold batteries to WEI Neng to increase revenue, but also handed over the burden of charging BaaS subscription fees to Wei Neng"; In addition, the Grizzlies also pointed out that NIO "allows NIO to immediately recognize the revenue from the sale of batteries", rather than a periodic audit of the subscription period. In other words, the Grizzlies argue that NIO has been dumping a lot of costs to NIO to create better statistics.
3. In addition, the Grizzlies also pointed out that Li Bin was closely related to Liu Erhai, a core figure who had been involved in the Performance Fraud Case of Luckin Coffee, suggesting possible investment risks.
By the close of the day, Nio's stock price had closed down 2.57%, and at one point it had a big intraday decline. In the speech of #WEILAI Auto in response to being shorted by Grizzlies, Weilai Fang said that it has "always strictly complied with the relevant guidelines of listed companies, and has now launched relevant procedures for the report", hoping that people will pay attention to its follow-up announcement. #Auto Info # #蔚来汽车回应做空 #
