Why Deliveries From Naked Brand's EV Ally Cenntro Crashed Its Share Price

Privately held Chinese electric vehicle (EV) maker Cenntro had apparently good news for investors on Dec. 27 when it reported the manufacture of more than 600 commercial EVs and their delivery to European clients. Despite this upbeat news, its ally, intimate apparel company Naked Brand Group (NASDAQ: NAKD), saw its shares drop 6.74% by the close of trading on the same day.

Naked is planning to take Cenntro public without an IPO through an acquisition and merger. Here's why the market may be wary about the deal, but why there might also be bullish light at the end of the tunnel.

Image source: Cenntro Automotive.

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Source Fool.com