Nio shares rebound after GIC lawsuit over alleged revenue inflation

Core Viewpoint - Nio Inc's shares experienced a rebound after a significant decline due to a lawsuit from Singapore's sovereign wealth fund GIC, which accuses the company of issuing misleading statements that inflated its securities value [1][2]. Group 1: Lawsuit Impact - The lawsuit filed in New York's Southern District claims that Nio's alleged misleading statements caused GIC to incur substantial financial losses [1]. - Following the lawsuit's revelation, Nio's stock fell sharply by 9.8% in Singapore and 13% in Hong Kong on Thursday [2]. - Market observers suggest that the legal action could hinder Nio's future fundraising efforts [2]. Group 2: Company Response and Financials - Nio has denied all allegations related to false claims from a 2022 short-selling report by Grizzly Research [2]. - The company recently raised $1.2 billion through a share sale, although it is still trailing behind competitors like BYD and Geely [3]. - Morningstar Research indicated that while the allegations could harm Nio's corporate governance reputation, they are not expected to materially affect operations [3]. Group 3: Market Performance - Nio's stock rose by 2.86% in Singapore and 2.48% in Hong Kong during Friday afternoon trading following the initial decline [1]. - The research firm anticipates that vehicle sales growth and profitability improvements will support near-term share prices [4].