The Elizabeth Holmes of China Tries His Hand at Nasdaq

The Equity Dispatch #20

Drone photo of the company’s main factory, in California, taken on a weekday in 2021, months after production was supposed to have begun.

This EV company, founded by one of China’s most notorious fraudsters, is still trying to wring a few last drops of capital from investors. Despite having claimed four years ago that it already had 14,000 reservations for the cars it was poised to deliver, the company managed to sell only four of the 10 cars it finally coughed out in 2023.

This Nasdaq-listed company is on its back and will soon join the world of the Pink Sheets. But since the shares keep rising sharply and then deflating, we feel we should discuss why we’re flabbergasted that anyone would own this stock.