Mei Ri Jing Ji Xin Wen·2025-10-16 10:20Core Viewpoint - NIO's stock price has dropped significantly following a lawsuit filed by Singapore's sovereign wealth fund, GIC, alleging securities fraud against the company and its executives [1][2]. Group 1: Lawsuit Details - GIC has accused NIO of inflating revenue and profits through a partnership with Wuhan Weinan Battery Asset Co., misleading investors and causing financial losses [1]. - The lawsuit is based on allegations stemming from a short report by Grizzly Research in June 2022, which claimed NIO may have manipulated its financial results [2][3]. - Grizzly's report indicated that NIO's stock had risen over 450% since 2020, attributing this to potentially misleading financial practices [2]. Group 2: Company Response and Investigations - NIO conducted an independent internal review in August 2022, which found no wrongdoing, and the SEC did not take further action after NIO's response to their inquiries [3]. - Major financial institutions, including Deutsche Bank and Morgan Stanley, have publicly supported NIO, disputing the claims made in Grizzly's report [3]. Group 3: GIC's Legal History - This is not GIC's first lawsuit against a publicly listed company; the fund has previously sued several multinational corporations, indicating a pattern of using legal action as a risk management strategy [4]. - GIC manages over $100 billion and has faced challenges with its investment returns, with a 20-year annualized real return rate of 3.8% as of March 2025, the lowest in recent years [4].