April 22 Shares of Arotech Corp, a
maker of lithium batteries for military tanks, fell as much as
17.5 percent after a report on stock commentary website Seeking
Alpha said its shares were not worth more that $2, less than
half of Monday's closing price.
Arotech's shares more than doubled between Feb. 26 - when
Tesla Motors Inc said it planned to raise $1.6 billion
to finance a new battery factory - and April 1, when the company
said it would not enter the electric vehicle market.
A writer identifying himself as Small Cap Machine said on
Seeking Alpha that Arotech shares were "massively overvalued"
considering the fact it would not benefit from the Tesla factory
and that there was small potential for a big military contract.
The author described himself as a hedge fund manager with a
short position on Arotech shares. (r.reuters.com/pyv68v)
Arotech could not be immediately reached for comment.
The stock was down about 16 percent at $3.73 on Tuesday
afternoon on the Nasdaq.
(Reporting by Sagarika Jaisinghani in Bangalore; Editing by Don