SG wealth fund GIC sues Nio in US court over alleged inflated revenues

GIC alleged that the group made "materially false and/or misleading statements."

Singapore’s sovereign wealth fund GIC has sued Nio in a United States court, accusing the Chinese electric vehicle (EV) company of violating securities laws by inflating revenues, according to a Bloomberg report.

The lawsuit named the company, its chief executive officer, and former chief financial officer as defendants.

GIC alleged that the group made "materially false and/or misleading statements" about Nio’s ties to an affiliated company called Nio Battery Asset and failed to disclose key facts about its business.

According to the complaint, those misstatements artificially inflated the value of Nio’s securities, causing GIC to suffer "significant losses."

Nio operates a battery subscription model in which car buyers do not have to buy batteries outright. Instead, they can pay a recurring fee to access the company’s network of battery-swop stations.

GIC’s suit contended that Weineng’s financial records show that it bought batteries upfront from Nio, allowing Nio to immediately record the full revenue from those sales, even though the end users had not yet paid for the batteries.

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