Selling picked up again. Shares of Nidec, the Japanese motor maker, dropped 6.6% on Tuesday, returning to prices from July 2016. From a Sept. 18 peak, the stock has now fallen more than 34%, a slide that quickened after the company said it would take a large impairment expected to eliminate practically all profit it earned over the last ten years.
The latest confidence hit arrived in late September when Nidec's auditor refrained from issuing an opinion regarding its financial statements, stoking uncertainty. The company is also still working through an accounting scandal that led the Tokyo Stock Exchange to put it under special scrutiny in October 2025. Delisting is on the table if the exchange decides Nidec has not sufficiently strengthened its internal controls. The company plans to deliver its report by Oct. 28, detailing the changes.
There was a brief rebound: shares had climbed as much as 50% from a late-October 2025 low on hopes tighter oversight would lead to better governance. Those gains have now been almost completely wiped out.
Multi-year share lows usually reflect doubts about demand, not just one quarter. Market Briefs covers the industrials free every morning.
Pressure is building beyond the tape. Oasis Management Co., which owns about 8% of Nidec, has pushed the company to consider going private, including seeking preliminary offers from potential buyers. Analyst sentiment is cooling too, with UBS cutting its rating to neutral and lowering its price target.
"The stock is not in a position where investors can aggressively buy," said Naoki Fujiwara, who serves as Shinkin Asset Management Co.'s senior fund manager. He noted that the implications of the auditor's disclaimer remain unclear, which is weighing on the shares. For fund managers, the inability to rule out delisting makes it hard to hold the stock, said Ikuo Mitsui of Aizawa Securities, adding that a broad governance overhaul will take time and that visibility on the company's outlook is still limited.
For everyday investors, the practical takeaway is simple: when a company's earnings picture, governance, and listing status are all unsettled, big price swings tend to stick around.
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