Asian Tech Press (Nov 8) -- Chinese autonomous aerial vehicle (AAV) technology company EHang Holdings Limited (Nasdaq: EH) said late Tuesday that a report by Hindenburg contains untrue statements and misinterpretation.

U.S. short-seller Hindenburg Research released a report on Tuesday questioning EHang's capital reserves, technological strength, order authenticity, etc.

Following the news, EHang, which went public on the Nasdaq in December 2019, plummeted 12.7% on the same day.

EHang responded in a statement that the report "contains untrue statements and misinterpretation of information regarding the Company’s business operations and financial conditions."

The company firmly denied the allegations in the short seller report that it misled investors about its order pipeline and sales, and will take appropriate action to protect its and its shareholders' interests.

In the view of EHang, the report "highlights the short seller's cursory and incomplete understanding of the company's industry and business operations."

"The accumulated orders and pre-orders the company has received in the past reflected the strong interest and genuine demand from customers for EHang's innovative electric vertical take-off and landing (eVTOL) products, which are based on signed contracts and planned for delivery after obtaining regulatory approvals, as per customers' requests," EHang said.

According to the company's website, EHang is an urban air mobility (UAM) technology company that provides unmanned aerial vehicle (UAV) systems and solutions to customers in multiple industry sectors around the globe.

Earlier this month, Ehang officially opened its first European UAM center in Spain.