Shen Zhen Shang Bao·2025-10-16 07:22Core Viewpoint - NIO Inc. faces significant stock price decline following a lawsuit filed by Singapore's sovereign wealth fund, GIC Private Limited, alleging securities fraud against the company and its executives [2][3] Group 1: Stock Performance - NIO's stock price dropped over 12% during trading, with a notable decline of 10.2% in Singapore, reaching $6.25 [1] - As of the latest update, NIO's shares in Hong Kong fell over 9%, trading at 49.22 HKD [2] Group 2: Legal Issues - GIC has filed a lawsuit in the U.S. against NIO and its executives, claiming that the company exaggerated revenue and profits through its joint venture, Wuhan WeNeng Battery Asset Co., Ltd. [2] - The lawsuit alleges that NIO misled investors, resulting in GIC suffering losses estimated between $500 million to $2 billion from its investment in NIO [2] - The lawsuit is a response to a short-selling report released by Grizzly Research in June 2022, which raised concerns about NIO's financial practices [3] Group 3: Financial Data - Following the establishment of WeNeng in August 2020, NIO's revenue surged from 2.85 billion CNY in Q4 2020 to 6.64 billion CNY, marking a 133% increase [2] - GIC purchased 54.45 million shares of NIO between August 2020 and July 2022, with significant losses attributed to the stock's decline [2] Group 4: Market Reaction - The lawsuit has drawn considerable attention in the capital markets, as it marks the first instance of a sovereign wealth fund suing a Chinese concept stock independently [3] - NIO's recent sales performance has been mixed, with overall sales showing resilience in the electric vehicle market, but flagship model ET9's sales have been disappointing [3]