GIC sues EV maker Nio in US for inflating profit, revenue

Singapore's GIC has filed a lawsuit in the United States against Chinese electric vehicle (EV) maker Nio for allegedly exaggerating its profit and revenue.

- Angela Tan

Nio chief executive officer William Li with the electric vehicle maker's ET9 model at a Nio Day event in China in December 2023. The Chinese company is slated to launch in Singapore in early 2026 after appointing multi-brand motor dealer Wearnes Automotive as its distributor in August.

(PHOTO: NIO)

The stockholder suit was filed on Aug 28 in the US District Court for the Southern District of New York. It names Nio and its two founders - chief executive officer William Li, also known as Bin Li, and former chief financial officer Wei Feng - as defendants in court documents seen by The Straits Times.

Feng left the company in July 2024.

GIC, which is estimated to have bought 54.5 million Nio American depositary shares between Aug 11, 2020, and July 11, 2022, alleged that prices "were inflated artificially".

A person close to the case told ST that the suit was filed by GIC for greater protection, even as a class action is taking place.

"GIC is already automatically a class member of the ongoing US class action against Nio, along with all other investors who purchased Nio's American depositary shares (US-listed securities) during the time period in issue,” he said.

"Because of expiring litigation deadlines under US law, GIC filed a customary 'placeholder' complaint simply to preserve all its options - whether to stay or opt out of the class action," he added.

The news sent the share price of Nio - once seen as a rising star in the EV industry - tumbling in Singapore and Hong Kong on Oct 16.

It closed at US$6.30, nearly 10 per cent lower in Singapore, and at HK$49.28, about 9 per cent down in Hong Kong. Nio shares are also listed in New York.