Hyzon Motors Stock Crashes on Scathing Short-Seller Report

By September 28, 2021 2   min read  (346 words)

September 28, 2021 |

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  • Hyzon Motors Stock Crashes on Scathing Short-Seller Report
  • A short-seller has made some serious allegations about the electric vehicle stock.

What happened

Electric vehicle stock Hyzon Motors (NASDAQ:HYZN) crashed this morning and was trading down 23% at 10:30 a.m. EDT.

Shares of the hydrogen fuel cell commercial vehicle manufacturer have had quite a choppy ride since Hyzon Motors went public on July 19 after a merger with a special purpose acquisition company, but a scathing short-seller attack is proving brutal today.

So what

On Sept. 28, Blue Orca Capital released a short-seller report on Hyzon Motors that contained some stunning allegations.

Below are some of the things Blue Orca has claimed in its report:

  1. Fake largest customer: Blue Orca says Shanghai HongYun, the company Hyzon secured a 500-truck order from earlier this month, was formed just three days before the deal and appears to be a fake shell entity.
  2. Large order not really an order: Blue Orca says Hyzon’s claim that it will deliver 1,500 trucks to New Zealand-based Hiringa by 2026 are misleading, as Hiringa is just a small marketing start-up and not a customer. Hiringa reportedly told Blue Orca it doesn’t intend to take any delivery from Hyzon in 2021, contrary to the latter’s claim that Hiringa will account for 24% of its 2021 deliveries.
  3. Inflated revenue projections: In its investor presentation dated Feb. 2021, Hyzon claimed heavyweights like Coca-Cola, Heineken, and IKEA as its customers with potential orders worth $700 million. Blue Orca points out Hyzon dropped these names from its subsequent investor decks and disclosures, yet didn’t adjust its revenue projections.
  4. Unrealistic financial projections: Blue Orca says Hyzon’s projected gross margin of 32% despite no revenue generation right now is “pure fantasy,” as it’s nearly twice the industry average and 10 percentage points higher than Tesla‘s gross margin.
  5. Repackaged version: Blue Orca says Hyzon is just a repackaging of struggling fuel cell Chinese parent Horizon, which delisted from China’s OTC market in March 2021 and reported 81% decline in fuel cell sales since 2019.

Read the entire report at the link below.


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