Pirelli denied the release of tires for military use

Pirelli's shares Pirelli have recovered in price after a sharp decline when the company denied a report by Grizzly Research, a short seller, that the tire maker was making more profit in Russia than it was reporting, as well as producing tires for military use.

"The data from Grizzly Research is not true," Pirelli said, adding that the company does not produce tires for military use and "has long since informed the Italian authorities about it". Pirelli also instructed its lawyers to take action regarding the dissemination of false information.

Grizzly Research had previously reported that the Russian market accounted for around 10% of Pirelli's net profit, while according to the tire company's recent quarterly report, as of March 31, 2026, Russia, the Middle East, Africa, and India combined accounted for less than 6% of its revenue.

The investor also claims that a dealership in Ukrainian territories controlled by Russian troops was supplying products to them, "and Pirelli employees knew who the buyer was and what their goals were". "We are concerned that Pirelli's relationship with the Russian state may pose a threat to Western security," Grizzly Research said.

In March 2022, Pirelli announced that it would continue to operate in Russia but would stop investing in the country, limiting itself to only the expenses necessary to pay salaries and fulfill social obligations to employees.

Pirelli owns plants in Voronezh and Kirov in the country, and the latter is a joint venture with the state corporation Rostec, which, according to Grizzly Research, "may allow Russia to gain access to technologies critical to the development of advanced military equipment".

When Grizzly Research made its statement public, Pirelli's shares fell by 13.4% to a yearly low, but after the company came out with a denial, the papers began to rise in price. Companies playing on the decline take shares on loan, sell them at a high price, then buy them back when the value decreases, return them, and take the difference for themselves.

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