A Short-Seller Alleges That Kandi Technologies Faked Its Sales

John Rosevear, The Motley Fool
·2-min read
A Short-Seller Alleges That Kandi Technologies Faked Its Sales

A prominent short-selling firm has alleged that Chinese electric-vehicle maker Kandi Technologies (NASDAQ: KNDI) falsified revenue by recording transfers to affiliated companies as sales. Hindenburg Research, the short-seller whose allegations against electric-truck start-up Nikola (NASDAQ: NKLA) led to the departure of Nikola's founder and a federal investigation, released a report on Monday alleging that a large percentage of Kandi's reported sales have actually been transfers to affiliated companies. If true, that would mean that Kandi has reported revenue that it did not actually generate.