In Depth: Singapore Sovereign Fund Sues Chinese EV-Maker Nio
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In its lawsuit against Nio in the U.S., GIC accused the electric-vehicle maker, its CEO Li Bin and its Chief Financial Officer Feng Wei, of using a battery rental joint venture to inflate company revenue. Photo: AI generated
Singaporean sovereign wealth fund GIC Pte. Ltd. is suing Chinese electric-vehicle (EV) maker Nio Inc. and executives for alleged securities fraud, in a bid to recover “tremendous” investment losses.
GIC filed a complaint with the New York Southern District Court in late August, accusing Nio, along with its CEO Li Bin and Chief Financial Officer Feng Wei, of violating securities law, alleging that they used a battery rental joint venture (JV) to inflate the automaker’s revenue.
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- Singapore’s GIC sued Nio Inc. and executives in New York for alleged securities fraud, claiming they used a JV to inflate revenue and mislead investors.
- GIC bought 54.5 million Nio ADSs from 2020-2022; potential losses are estimated between $500 million and $2 billion as Nio’s shares fell from $60 in 2021 to below $7.
- The lawsuit is currently suspended pending a ruling in an earlier class action related to the same allegations.
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Who’s Who
- Nio Inc.
- Nio Inc. (蔚来汽车) is a Chinese electric vehicle maker facing a lawsuit from Singaporean sovereign wealth fund GIC Pte. Ltd. GIC alleges securities fraud, claiming Nio and its executives used a battery rental joint venture, Wuhan Weineng Battery Asset Co., to inflate revenue. Nio's shares plunged after these allegations drew attention. The company has accumulated nearly 120 billion yuan in losses since its 2018 IPO.
- Wuhan Weineng Battery Asset Co.
- Wuhan Weineng Battery Asset Co. is a battery rental joint venture launched in 2020. Nio sells batteries to this JV, which then leases them to customers through a "battery-as-a-service" model. GIC alleges this JV was "purposefully created" to inflate Nio's revenue and manipulate its financials, asserting Nio's claims about its stake (19.8%) were designed to avoid consolidation.
- GIC Pte. Ltd.
- GIC Pte. Ltd. is a Singaporean sovereign wealth fund. It is suing Chinese EV maker Nio Inc. and its executives for alleged securities fraud to recover "tremendous" investment losses. This marks the first known time a sovereign wealth fund has sued a U.S.-listed Chinese company. GIC is seeking damages for alleged losses ranging from $500 million to over $2 billion.
- Grizzly Research LLC
- Grizzly Research LLC, a U.S. short seller, published a report in 2022 alleging that Nio Inc. used "accounting games." Specifically, they claimed Nio improperly recognized revenue from battery sales to Wuhan Weineng Battery Asset Co., an unconsolidated related party subsidiary. They suggested Nio oversupplied batteries to Weineng to inflate revenue. Nio denied these accusations.
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What Happened When
- 2020：
- Wuhan Weineng Battery Asset Co., a battery rental joint venture, was launched.
- August 2020：
- Almost immediately after the JV was created, Nio’s revenue surged.
- Q4 2020：
- Nio generated 6.6 billion yuan ($926 million) in revenue, more than doubling year-on-year.
- 2021：
- Nio's U.S.-listed shares peaked at around $60.
- 2022：
- Grizzly Research LLC published a report claiming Nio used 'accounting games' regarding its battery sales to Weineng.
- Between August 2020 and July 2022：
- GIC purchased about 54.5 million Nio ADSs.
- After 2022：
- Shortly after the Grizzly Research report, investors launched a class action lawsuit against Nio.
- By June 2025：
- Nio’s accumulated losses had reached nearly 120 billion yuan.
- Late August 2025：
- GIC filed a complaint with the New York Southern District Court, suing Nio and executives for alleged securities fraud.
- Wednesday, October 15, 2025：
- Caixin’s Chinese-language report on GIC’s lawsuit circulated among investors; Nio's shares were below $7.
- Thursday, October 16, 2025：
- Nio’s Singapore- and Hong Kong-listed shares plunged around 9%.
- As of early October 2025：
- The GIC lawsuit case has been suspended as the court awaits a ruling in the earlier class action case.
AI generated, for reference only
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