Feng Huang Wang·2025-10-16 11:44Core Viewpoint - NIO's stock price fell by 8.99% to HKD 49.28 on October 16, primarily due to a lawsuit filed by Singapore's Government Investment Corporation (GIC) against the company and its executives for alleged securities fraud [1] Group 1: Lawsuit Details - GIC accuses NIO of inflating revenue and profits through a partnership with Wuhan WeNeng Battery Asset Co., misleading investors and causing GIC to incur investment losses [1] - After the establishment of WeNeng, NIO's revenue surged from CNY 2.85 billion to CNY 6.64 billion in Q4 2020, with GIC reportedly suffering estimated losses between USD 500 million to USD 2 billion from purchasing 54.45 million NIO ADS between August 2020 and July 2022 [1] Group 2: Background on Short Selling - The lawsuit is a continuation of allegations stemming from a short report by Grizzly Research in June 2022, which NIO previously denied, claiming the report contained numerous inaccuracies and misleading conclusions [1] - In response to the short report, NIO conducted an independent internal review, which found no wrongdoing, and major financial institutions like Deutsche Bank and Morgan Stanley supported NIO's business model against Grizzly's claims [2][2]