Loop Industries plummets 39% after a short-seller report claims its plastic-recycling technology doesn’t work



a man looking at the camera: Getty Images / Xinhua News Agency


© Getty Images / Xinhua News Agency
Getty Images / Xinhua News Agency

  • The same short-seller that targeted Nikola in September has set his sights on a new name: Loop Industries.
  • In a report released on Tuesday, Hindenburg Research alleged that Loop Industries’ technology for recycling plastics didn’t work, describing it as “smoke and mirrors.”
  • Shares of Loop Industries fell as much as 39% on Tuesday.
  • Visit Business Insider’s homepage for more stories.

The same short-seller that targeted Nikola in September is now alleging that another company “is smoke and mirrors” and is inflating its technological capabilities.

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In a report released on Tuesday, Hindenburg Research alleged that Loop Industries was peddling plastic-recycling technology that didn’t work.

Investors have taken note of what Hindenburg has to say since its September report on Nikola led to a drawdown of nearly 50% in that stock.

Loop Industries says it uses proprietary

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Loop Industries plummets 36% after a short-seller report claims its plastic-recycling technology doesn’t work

  • The same short-seller that successfully targeted Nikola Corp. in September has set his sights on a new name: Loop Industries.
  • In a report released on Tuesday, Hindenburg Research alleged that Loop Industries’ technology for recycling plastics doesn’t work. 
  • “Our research indicates that Loop is smoke and mirrors with no viable technology,” Hindenburg said. 
  • Shares of Loop Industries fell as much as 36% in Tuesday trades.
  • Visit Business Insider’s homepage for more stories.

The same short-seller that successfully targeted Nikola Corp. in September is now alleging that another company “is smoke and mirrors” and is inflating its technological capabilities.

In a report released on Tuesday, Hindenburg Research alleged that Canada-based Loop Industries is peddling a plastic-recycling technology that simply doesn’t work.

Investors are taking note of what Hindenburg has to say after its September short report on Nikola Corp. led to a drawdown of nearly

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Analysts think Nikola stock could surge 60% despite short-seller battle

  • Nikola, an electric truck startup, saw its stock price fly high as it went public and announced a deal with General Motors. 
  • A damning short-seller report, however, pared some of those gains back to July levels. 
  • Still, Wall Street analysts are firm in their convictions that the stock could rise more than 50%. 
  • Visit Business Insider’s homepage for more stories.

 

Nikola, the high-flying electric-truck maker, hasn’t seen its stock price recover yet from the damage inflicted by a short-seller earlier this week, but that’s not for lack of optimism on Wall Street.

Analysts have largely been unswayed in their conviction about the startup, even after it corroborated some of Hindenburg Research’s allegations while rebutting its overall thesis. In analysts’ eyes, the stock could still have a 60% upside.

But that doesn’t mean things will be easy. The company hasn’t actually sold any trucks yet, and its $2 billion deal with

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