SHANGHAI, CHINA – MARCH 22: Pirelli tires are lined up for display before the Sprint ahead of the F1 Grand Prix of China at the Shanghai International Circuit on March 22, 2025 in Shanghai, China. (Photo by Mark Sutton – Formula 1/Formula 1 via Getty Images)
Mark Sutton – Formula 1 | Formula 1 | Getty Images
Italian tire maker The Pirelli ordered lawyers to take legal action against Grizzly Research after the short seller published a report saying the company had “close ties” with Russia that “threatened the security of the West.”
Pirelli ordered Gatti Pavesi Bianchi Ludovici Studio Legale Associato’s lawyers to “take action in all areas against those who spread this false information” in an effort to “protect all shareholders and the good name of the company,” the company said in a statement on Thursday.
This came after a report by Grizzly Research claimed to have found a discrepancy between Pirelli’s publicly disclosed salary and what he claimed to have received in Russian documents.
Many major tire manufacturers, incl Michelin, The continent, Goodyear again Bridgestonethey were forced to accept a large write-down as they exited their Russian businesses after Moscow’s full-scale invasion of Ukraine in 2022. Pirelli said at the time it would stop further investment in the country.
“The general perception of investors seems to be that Russia is an insignificant part of Pirelli’s operations,” Grizzly said. “Our research paints a different picture.”
The short seller, who last month made similar allegations linking Russia to German automaker Ottobock, said Russian documents said 10% of Pirelli’s net profit came from its operations in the country. This compares to the tire maker’s claim that only 6% of its revenue comes from Russia, the Middle East, Africa and India combined.
“We suspect that this increase in Russian business may be due to Russia’s invasion of Ukraine,” Grizzly said.
“We discovered that a tire plant in occupied Ukraine listed on Pirelli’s website serves the Russian military, and that Pirelli employees, knowing that the buyer was buying tires for Russian forces fighting in Ukraine, shared contact information to place the order.”
Pirelli shares initially fell in response to the report before rebounding.
The short-seller added that Pirelli’s relationship with the Russian state “could pose a security risk to the West,” saying Pirelli’s Kirov plant operates in an industrial zone that also includes a Russian state-owned tire manufacturer controlled by a military research institute.
“That agency holds a 25% stake in Pirelli’s main Russian business. Only one small shareholder, with a 9.99% stake, seems to have a very close relationship with this agency,” he said.
“Pirelli appears to share critical infrastructure with the center’s factory, and we are concerned that, with this proximity and its corporate relationship with the Russian regime, Russia could gain access to the most important technology for advanced military equipment.”
Pirelli’s stock was volatile on Thursday. It initially fell as much as 13% before consolidating most of its losses and ended up trading just below the bottom line.
The Italian team said in a statement: “The content of the note from Grizzly Research does not reflect the truth.
“Pirelli confirms, among other things, that it does not produce tires for military use, as it is already known and informed a long time ago to the relevant Italian authorities.
“In order to protect all shareholders and the good name of the Company, Pirelli has authorized Gatti Pavesi Bianchi Ludovici Studio Legale Associato to take action in all areas against those who spread this false information.”
