GIC sues Nio and executives over alleged $600M revenue fraud via controlled joint venture.

Singapore’s sovereign wealth fund GIC sued Nio and its top executives in a U.S. court, alleging the electric vehicle maker inflated revenues by improperly recognizing income from a joint venture, Weineng Battery Asset, which it effectively controlled. The lawsuit, filed in August, claims Nio made 14 false or misleading statements between 2020 and 2022, artificially boosting financial results by at least $600 million. GIC, which invested in Nio in 2017, seeks damages for losses caused by the alleged fraud. The case is stayed pending resolution of a similar lawsuit. Nio’s Singapore-listed shares dropped 8.1% on October 16, closing at $6.40, amid ongoing financial challenges from its capital-intensive battery-swapping model. The company has not commented on the suit.