Just now, new energy automobile stocks collectively collapsed, of which NIO Inc. Automobile fell by 10%, Great Wall Motor by more than 9%, Geely Automobile by 8.6%, XPeng Inc. and Li Auto Inc. by nearly 8%, and BYD and Guangzhou Automobile Group by more than 4%.

Behind the collapse of new energy vehicles, with the orderly progress of policy support and resumption of work and production, concept stocks related to new energy vehicles have risen for more than a month, and there is adjustment demand in the sector: some stocks have even doubled. For example, Changan Motor has tripled in less than February, Li Auto Inc. has risen 50% a month, and has doubled since March. BYD's share price has broken through an all-time high and has doubled since its March low.

Second, the auto stock correction, the overall market situation is poor, the US stock market plunged again overnight dragged down the overall market atmosphere, the NASDAQ index fell 3%, the US consumer confidence plummeted, causing market worries about the economic recession to rise, light the US stock market atmosphere.

Finally, the two leading car stocks suddenly suffered heavy losses. Changan Automobile's profit market was queued up for shipment, while the company's major shareholders were still reducing their holdings; NIO Inc. cars were attacked by foreign investors, accused of financial fraud, causing capital to flee the profit disk.

Flash collapse fell to the limit, Changan Automobile emergency announcement: no reduction

When auto stocks plummeted, 200 billion auto giants directly fell by their daily limit, with a market capitalization of 200 billion.$Changan Automobile (000625.SZ) $Go straight to the limit, even if the Changan car released good at noon, the stock price moved slightly in the afternoon, and then continued to fall to the limit.

Changan Automobile announced at noon today that on June 28, 2022, Armament Group, China Changan and Southern assets issued a letter of notification of the progress of share reduction and early termination of the reduction plan to the company. the actual controller and concerted action have reduced their shares by more than 1%, and at the same time, according to their own financial arrangements, decided to terminate the share reduction plan ahead of schedule.

It is worth noting that the share price of Changan Automobile has risen about twice since the end of April, with at least five trading limits in the middle, making it the darling of capital.

NIO Inc. plummeted 10%. Is there any justification for foreign investors to sell short?

A shares fell by the daily limit of Changan, while Hong Kong stocks fell by 10%. The reason was that NIO Inc. was suddenly attacked by foreign investors last night, saying that NIO Inc. exaggerated his performance and had a close relationship with the fraudulent LUCKN COFFEE DRC important figures.

Thanks to its outstanding operating performance, NIO Inc. 's share price has risen more than 450% since 2020, making it one of the most valuable electric car companies in China, Grizzly Research said in the report. But the outstanding performance that underpins the rise in share prices is achieved through financial means.

Grizzly Bear reported that NIO Inc. generated billions of dollars in revenue from the established Wuhan Ulergy Battery Company, which contributed at least 60 per cent of NIO Inc. 's better-than-expected earnings in fiscal year 2021.

Grizzly Bear believes that NIO Inc. will not be able to recognize additional revenue from the BaaS business and transfer the costs and expenses associated with the battery replacement business off the balance sheet. In doing so, NIO Inc. deceived Wall Street and investors with financial results that were out of touch with reality.

Grizzly Bear estimates that NIO Inc. falsely increased revenue by 1.147 billion yuan in the first three quarters of fiscal year 2021. After pushing back this operation, the company's net loss rose from 1.874 billion yuan to 3.69 billion yuan.

In addition, the grizzly bear pointed out that Li Bin has a close relationship with Liu Erhai, one of Ruixing's "Golden Triangle". Liu has been a long-time director of the barter car controlled by Li Bin, and Liu has invested in NIO Inc. and mobike.

In response, NIO Inc. said that NIO Inc. Motor (09866.HK) issued a notice on the Hong Kong Stock Exchange on June 29 that the report was unfounded and that its information about the company included many errors, unfounded speculation and misleading conclusions and interpretations, and the company would further disclose the relevant information.

However, for foreign investors shorting NIO Inc. cars, some investors said that "grizzly bears are justified in shorting NIO Inc.", while others said that "there are a lot of NIO Inc. on the road."