NIO StockProThe parent company sells batteries to its subsidiary, which then leases them to users. From my limited financial knowledge, the key is whether the subsidiary is consolidated. If not, this operation is fine; if consolidated, this income becomes the subsidiary's cost, increasing the parent company's costs. Moreover, the subsidiary's funds also come from investors and NIO. The short-selling report at the time has already been refuted. Now, filing a lawsuit again, while not unreasonable, still requires sufficient evidence.
Singapore sovereign wealth fund GIC sues Nio over losses from three years ago
Singapore sovereign wealth fund GIC has filed a lawsuit against Nio Inc, alleging that the electric vehicle maker misled investors by inflating revenue through its battery asset operator, Mirattery. The lawsuit, which stems from a short-selling report released in June 2022, claims that Nio's revenue recognition practices were misleading. GIC, which accumulated approximately 54.45 million Nio ADS shares, argues that Nio's stock price surge was based on inflated performance metrics. The case is currently stayed in a US court pending the resolution of a prior class action lawsuit against Nio.
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