Nio Sued by Singapore's GIC Over 2022 Short-Seller Allegations; Shares Plunge Over 6%
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Nio faces a lawsuit from Singapore's GIC reviving baseless 2022 short-seller claims on revenue inflation via its BaaS model, causing shares to plunge over 6% on October 16, 2025, amid ongoing EV challenges.
Singapore's Government Investment Corporation (GIC) has sued Nio, alleging revenue inflation via its battery unit, causing investor losses. Nio responded on October 16, 2025, stating the case revives unfounded 2022 Grizzly Research claims, cleared by an independent probe that found no issues.
The news triggered sharp declines: Hong Kong shares (9866.HK) fell 8.99% on October 16, while U.S. shares (NIO.N) dropped over 6%. Grizzly's June 2022 report accused Nio of misleading on its BaaS model through Wuhan Weineng; institutions like Deutsche Bank dismissed it as baseless, and the SEC closed its inquiry after Nio's response.
GIC's suit, stayed pending a 2022 class action, claims misrepresentation. Nio emphasized triple-listed compliance and regulatory approvals for BaaS disclosures. Analysts note GIC's frequent litigation as risk hedging; this adds uncertainty to Nio's Q4 profitability push amid EV challenges.
