“The #1 Tech Opportunity of the Decade”

On February 8th, Luke Lango is making his biggest call of 2023. He’s recommending technology (that you’ve likely never heard of) that could help 122 million people… And mint up to $3 trillion in wealth.

Wed, February 8 at 8:00PM ET

HYZN Stock Alert Plunges on Subpoena News. Here’s What to Know.

New York-based auto manufacturer Hyzon Motors (NASDAQ:HYZN) is feeling the heat today after disclosing a regulatory subpoena. HYZN stock dropped 16% in premarket trading today and is currently down 8% on the ominous news. The company has seen a steady and steep decline in the past year, shedding 41% of its share price. This recent news appears as yet another strong bearish sign for the struggling automaker.

A person refueling a hydrogen car representing Hyzon Motors (HYZN) stock.
Source: Literator / Shutterstock.com

So, what do you need to know about the latest Hyzon news spooking investors?

Hyzon reported receiving a subpoena from the U.S. Securities and Exchange Commission (SEC) over allegations issued by Blue Orca Capital last September. At the time, Blue Orca listed a number of scathing accusations against the company. One such claim made in the September report details apparent fake clients:

“In our opinion, Hyzon’s supposed major customers are a fake-looking Chinese shell company incorporated three days before the deal announcement and a tiny New Zealand startup which told us they are not really a customer.”

It appears the chickens have come home to roost for Hyzon. What else is going on with Hyzon lately?

HYZN Stock Trends Close to All-Time Low On Disastrous News

It appears the subpoena news spoiled an otherwise positive day for Hyzon. Just this morning, the company announced delivering 87 fuel cell-powered heavy-duty vehicles last year. That beat its own expectations, as 85 deliveries were predicted by the end of 2021.

HYZN is currently sitting at $6.51 at the time of writing, not terribly far off its all-time low of $5.09 achieved in October. The drop likely came in response to the Blue Orca report, released a few weeks prior.

Blue Orca, a short-selling activist hedge fund, referred to Hyzon as a Chinese Lordstown Motors (NASDAQ:RIDE). This is a reference to the electric truck maker that sunk last year on news that it lied on preorder reports. Blue Orca’s claim was elaborated on in its September report:

“Hyzon is just a repackaging of its parent company, Horizon, a Chinese hydrogen fuel cell business that recently delisted from the Chinese OTC market in March 2021 at an enterprise value of just $190 million. Horizon has been trying to sell its fuel cell technology for years, without meaningful success.”

Therefore, Hyzon’s path forward seems murky amid an onslaught on bearish news.

On the date of publication, Shrey Dua did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2022/01/hyzn-stock-alert-plunges-on-subpoena-news-heres-what-to-know/.

©2023 InvestorPlace Media, LLC