Dhaka, March 21 -- China's leading LiDAR manufacturer, Hesai Technology, has denied allegations of links to the Chinese military following a report from short-seller Blue Orca Capital. The company is currently challenging the U.S. Defense Department's decision to list it as a supplier to China's military.

Hesai, the global leader in LiDAR technology, supplies laser sensors to major Chinese automakers, including BYD. Its Nasdaq-listed shares dropped about 10% on Tuesday after Blue Orca Capital released a report claiming the company misled investors about its military connections.

"We strongly disagree with the allegations in the Blue Orca report and are of the view that they are without merit," Hesai said in a statement. The company insi...