Nio Inc., a Chinese electric‑vehicle maker, saw its shares rebound on Friday after a sharp decline the day before. The drop was triggered by a lawsuit filed by Singapore’s sovereign wealth fund, GIC, which accused Nio of misleading investors by inflating its revenue. The complaint, lodged in the Southern District of New York, claimed that Nio’s statements artificially boosted the value of its securities and caused “significant losses” for GIC.
Nio has denied the allegations, saying they stem from false claims made in a 2022 short‑selling report by Grizzly Research. The company did not immediately respond to requests for comment. The lawsuit, filed in August, caused Nio’s stock to tumble—shares fell as much as 9.8 % in Singapore and 13 % in Hong Kong on Thursday. However, by midday on Friday the shares had recovered, rising 2.86 % in Singapore and 2.48 % in Hong Kong.
Nio designs, develops, manufactures and sells electric vehicles and recently raised $1.2 billion through a share sale. It is listed in the United States, Hong Kong and Singapore and is working to expand its operations, though it still trails Chinese rivals such as BYD and Geely. Analysts at Morningstar Research Pte Limited noted that while the allegations could affect corporate governance, they do not expect a major impact on Nio’s operations. The analysts pointed to the ramp‑up of new models—including the ES8 and Onvo L90—as support for near‑term share prices, and they forecast that higher vehicle sales and improved profitability should boost the stock.
The developments come as the electric‑vehicle industry continues to grow and evolve. Investors and industry observers will closely watch Nio’s ability to navigate the lawsuit’s challenges and maintain its operations. With Friday’s rebound, Nio’s shares appear to be stabilizing, but the lawsuit’s outcome and its long‑term effect on the company remain uncertain.
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