Billions wiped off Nio’s market value as shares plunge 9.5% on news of GIC lawsuit

The Chinese EV maker and its top execs are being sued for ‘fraudulent recognition’ of at least US$600 million revenue

Shares of Nio tumbled 9.5 per cent after Singapore’s sovereign wealth fund GIC on Thursday (Oct 16) filed a lawsuit against the Chinese electric vehicle (EV) maker and its top executives.

The suit alleges that Nio unlawfully recognised immediate revenue of more than US$600 million from a battery asset and leasing joint venture, Weineng Battery Asset, which was actually controlled by Nio and which it failed to disclose.

Shares of Nio on the Singapore Exchange dropped as much as 13.8 per cent – or US$0.96 – to the day’s low of US$6 as at 1.25 pm. At that price, Nio’s market capitalisation was down by about US$2.4 billion.

It climbed slightly to US$6.30 at the end of trading, US$0.66 down from Wednesday’s closing price of US$6.96.

The company, which is also listed in Hong Kong, suffered similar losses on the bourse there. Its shares fell as much as 13 per cent as at 1.38pm after having closed at HK$54.15 on Wednesday.

They later pared some of the losses to be 9 per cent down at the end of the trading day.

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Nio has not posted a profit since it was established in 2014.

In its last reported results, for the second quarter of 2025, Nio’s revenue was up 9 per cent year on year at 19 billion yuan (S$3.4 billion), with its net loss reduced 1 per cent to five billion yuan. Its vehicle deliveries increased 25.6 per cent to 72,056 vehicles.