Nidec dropped 6.6% on Tuesday, touching levels last seen in July 2016. That slump adds to a slide of more than 34% from the Sept. 18 high, a retreat that sped up after the company flagged a large impairment charge expected to wipe away nearly all profit built up over the last ten years.
Those losses come on the heels of a sharp rebound. The shares had risen by up to 50% off the late-October 2025 trough on hopes tighter oversight would force better governance. But those gains have now been almost entirely undone after, in late September, the company's auditor issued a disclaimer of opinion concerning its financial statements. Naoki Fujiwara of Shinkin Asset Management Co., who serves as a senior fund manager, said, "The stock is not in a position where investors can aggressively buy." He added that uncertainty about the impact of the auditor's stance is weighing on the stock.
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The Tokyo Stock Exchange placed Nidec under special scrutiny in October 2025 after an accounting scandal. The company faces possible delisting if the exchange concludes it has not sufficiently revamped internal controls. Nidec plans to deliver a report by Oct. 28 to demonstrate it has reinforced those controls.
Meanwhile, Oasis Management Co., which owns about 8% of Nidec, is pressing the company to consider going private, including soliciting preliminary bids. Sentiment has also cooled on the sell side, with UBS cutting the stock to neutral and lowering its price target.
For many fund managers, it is hard to justify holding the stock while delisting risk is still on the table. Ikuo Mitsui at Aizawa Securities noted that a broad governance overhaul will take time, and the lack of clarity on the company's outlook is another drag as Nidec aims to file its internal-controls report by Oct. 28. For regular investors, the through-line is simple: when governance uncertainty rises and visibility falls, volatility tends to linger.
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