DRONE DROP. A company manufacturing things that go up should brace for them to come down. Guangzhou-based drone maker EHang experienced a tailspin after regular China short-seller Wolfpack Research questioned its earnings quality, including pointing to its receivables versus revenue. The shares plummeted 63% despite $2.5 billion EHang saying the report was deceptive and contained “numerous errors.” A six-fold rally in the stock price over the last two months cushions the fall. Early backers of the December 2019 initial public offering can still enjoy a 370% gain. Even after the drop, unprofitable EHang trades at a sky-high 165 times expected profit. Chinese companies often shrug off short attacks: A 10% fall is more typical, followed by a swift rebound. It’s easy enough for investors in drone makers, especially ones planning flying cars, to look out to a more distant horizon. This swift downward spiral could helpfully jolt the focus. (By Jennifer Hughes)