$NIO Inc(NIO.US)Mr. Pi, the Singapore sovereign fund didn't participate in time to get shares in the last financing round, and then got anxious as the cost didn't come down. After all, they were the ones who bought at the peak. Several managers racked their brains and finally found a loophole from three years ago, trying to smash the price down to get some more shares 🤣

The 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.

NIO-SW

NIO Inc

NIO Inc. USD OV

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.

- GIC Private Limited has filed a lawsuit against Nio Inc. over alleged misleading revenue recognition practices related to its battery asset operator, Mirattery.  
- The lawsuit, triggered by a short-selling report in June 2022, claims Nio inflated revenue, resulting in losses for GIC, which accumulated approximately 54.45 million Nio ADS shares during a volatile stock period.  
- The case is currently stayed in a US court pending the resolution of a prior class action lawsuit against Nio, which has yet to respond to GIC's complaint.