Chinese Drone Maker’s Stock Plunges as Short-Seller Takes Aim

Autonomous aerial vehicle company EHang delivers coffee with its Falcon drone to the delegation on a government-organised tour to the Guangdong-Hong Kong-Macao Greater Bay Area, in Guangzhou, Guangdong province, China, on Feb. 28, 2019. Yuyang Wang/File Photo/Reuters

NEW YORK—Drone manufacturer EHang Holdings Ltd’s shares plunged on Tuesday after an investment research firm said it had shorted the stock and questioned the accuracy of what the Chinese company has said about its business.

Guangzhou, China-based EHang’s shares closed 62.7 percent lower at $46.30 on Nasdaq.