His online tutoring firm, GSX Techedu Inc., has been battered in the stock market, tumbling more than 80% since late January. Last month, the investor with the largest exposure to the shares Bill Hwang’s Archegos Capital Management imploded when it was unable to answer margin calls.
Short sellers including Carson Block’s Muddy Waters and others have been circling since last year, and GSX’s latest financial results showed wider-than-expected losses. It faced a new barrage this month, with Grizzly Research issuing a report questioning the number and qualifications of teachers working for the company, and arguing that auditor Deloitte shouldn’t give an opinion on the firm’s annual report.
It’s been a turbulent few weeks for Larry Chen, a former school teacher from a poor Chinese village who’s now one of the world’s richest people. His online tutoring firm, GSX Techedu Inc., has been battered in the stock market, tumbling more than 80% since late January. Last month, the investor with the largest exposure to the shares Bill Hwang’s Archegos Capital Management imploded when it was unable to answer margin calls. Short sellers including Carson Block’s Muddy Waters and others have been circling since last year, and GSX’s latest financial results showed wider-than-expected losses. It faced a new barrage this month, with Grizzly Research issuing a report questioning the number and qualifications of teachers working for the company, and arguing that auditor Deloitte shouldn’t give an opinion on the firm’s annual report.
Nio, the Tesla of China
“We can really think of Nio as the original Tesla of China”. Nio is not a very known brand in the United States but is a leading player in China’s electric vehicle market. The company is an automobile manufacturer that operates in China. The company designs, develops, and manufactures electric vehicles just like that of the famous Tesla.
Nio Inc. (NYSE: NIO) was founded in 2014 by the Chinese billionaire William Li. The CEO of Nio was inspired by the American electric vehicle Tesla (NASDAQ: TSLA). He was able to connect with an executive of Ford Motor and with other big-time investors with whom he shares the same vision: To make a Tesla of China from scratch. Li was backed by huge companies, one of those is Tencent which up to now has still a large stake in the car company.