Soren Aandahl, CIO and founder of Blue Orca Capital, joins Carson Block of Muddy Waters Capital to discuss his short thesis for Hyzon Motors Inc. ($HYZN), which Aandahl argues is eerily reminiscent of Lordstown Motors. After months of investigation, Blue Orca found that Hyzon’s supposed major customers are a fake-looking Chinese shell company incorporated three days before the contract announcement and a tiny New Zealand startup which doesn’t really think of itself as a customer. Aandahl also points out that many of Hyzon’s supposed big-name customers and partners mysteriously disappeared from the Company’s disclosures after Lordstown got into trouble for reporting fake partnerships and customers earlier in 2021. Aandahl argues that Hyzon is just a repackaging of a flailing Chinese parent company which has been trying to sell the same hydrogen fuel cells without much success for 17 years. The parent entity was delisted from the Chinese OTC exchange in early 2021 at an enterprise value of just $200 million. Hyzon is just a worse version of this same business in SPAC form, yet trades at 10x the valuation. This could be why two of Hyzon’s chief technology officers have resigned in the past 15 months, even though the Company is only 20 months old.

The full report from Blue Orca Capital can be found on their website: