05:53 AM EDT, 03/19/2025 (MT Newswires) -- Hesai Group ( HSAI ) said Wednesday it "strongly disagrees" with the allegations made in a recent report by Blue Orca Capital.

The short-seller recently alleged, among other things, that Hesai's ( HSAI ) LiDAR technology is being used in Chinese military vehicles.

The Blue Orca report is "without merit," Hesai ( HSAI ) said Wednesday. "The company reiterates its continued and unwavering commitment to stringent standards of business ethics and regulatory compliance."

Hesai ( HSAI ) shares were down 2.3% in recent Wednesday premarket activity after closing 7.8% lower Tuesday.