Fake Contract Scandal: Zhong Yi Drops 70% Then Rebounds 50%

Sharp Drop After Short Selling Analysis Report
Rebound Following Company’s Rebuttal
No Specific Explanation Provided

[Asia Economy New York=Correspondent Baek Jong-min] Chinese drone company Ehang, embroiled in a fake contract controversy, rebounded by more than 50% after a sharp drop the previous day.

On the 17th (local time) in the Nasdaq market, Ehang's stock price is trading at $70, up 52% from the previous day. Ehang successfully rebounded immediately after closing at $46.30, down 62.69% the day before.

At the Mulbit Stage area of Yeouido Hangang Park in Seoul, the two-seater drone taxi 'EH216' from Chinese company EHang is conducting an unmanned test flight during the Urban Air Mobility (UAM) demonstration flight event hosted by the Seoul Metropolitan Government and the Ministry of Land, Infrastructure and Transport.
[Image source=Yonhap News]

The plunge in Ehang's stock price originated from Wolfpack Research's short-selling report pointing out that Ehang's major contracts were fake.

The stock price rebound on that day is interpreted as a result of Ehang strongly denying Wolfpack Research's claims through a press release. However, it is evaluated that Ehang did not present decisive evidence to overturn Wolfpack Research's allegations.

The Ehang drone became a hot topic last year when Seoul City introduced it as a drone taxi.

This content was produced with the assistance of AI translation services.