MP Materials (MP) Stock Sinks 8% on New Short Report Saying the Rare Earth Co. is Controlled by China

October 26, 2021 12:03 PM EDT

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MP Materials (NYSE: MP) shares are trading down 8% on the earlier short report from Grizzly Research, saying the rare-earth company, which came public in November 2020 through a Chamath Palihapitiya SPAC, will likely "cost investors dearly."

Grizzly said MP is a "smoke and mirrors show", as related party Shenghe accounts for 99% of revenue and a sgnificant shareholder, can be traced back to the Chinese central government.

While President Biden’s plan to bring back rare earths would theoretically help MP, the Grizzly's research shows that "MP in reality remains under the control of the Chinese government."

The firm report from Grizzly Research can be found here.

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