Nio shares plunge 13.8% after Singapore’s GIC files lawsuit
The Chinese EV maker and its top execs are being sued for ‘fraudulent recognition’ of at least US$600 million revenue
[SINGAPORE] Shares of Nio tumbled as much as 13.8 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 US$0.96 to US$6.00 as at 1.25pm before climbing slightly to US$6.37 to be 8.5 per cent down as at 2pm.
The counter had ended Wednesday (Oct 15) at US$6.96.
The company, which is also listed in Hong Kong suffered similar losses on the Hong Kong Stock Exchange. Its shares there 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 8.1 per cent down as at 2pm.
