Nio Inc.'s (NYSE:NIO) shares fell over 7% in Premarket trading amid investor concerns over a lawsuit filed by a Singaporean Wealth Fund, alleging the automaker inflated its revenue.
Check out the current price of NIO here.
Nio’s Hong Kong Listed Shares Fall Too
Nio also recorded a 12% drop in its share price on the Hong Kong Stock Exchange, the single-largest drop in value since April this year, CnEVPost reported on Thursday.
The drop follows concerns over a lawsuit filed by GIC Pvt. Ltd., a sovereign wealth fund established in 1981 by the Singaporean government to manage the country's foreign reserves. The lawsuit alleges discrepancies in the Chinese automaker's revenue practices, the report said.
The lawsuit is currently stayed by the New York Southern District Court as of October 3, in favor of a related class action lawsuit. The lawsuit was filed by GIC after a 2022 report from U.S.-based short seller Grizzly Research, which said that Nio was inflating revenue and boosting margins through accounting tactics, the report said.
Interestingly, Nio's U.S.-listed shares also recorded a sharp decline in value last week after President Donald Trump said that he was considering imposing new tariffs on Chinese imports into the U.S. due to rare earth elements being monopolized by China, triggering broader market concerns over a renewed trade war.
Nio's Armenia Entry, LiDAR Supplier Receives Hong Kong Approval
The news comes as Nio announced its arrival into the Armenian market after signing a deal with Armenian dealer N-Motors, which revealed that it would introduce both Nio and Onvo vehicles into the Western Asian country earlier this week.
Nio's LiDAR supplier since 2022, Seyond Holdings Ltd., received approval from regulatory authorities in China for its Hong Kong stock listing through a Special Purpose Acquisition Company (SPAC), TechStar Acquisition Corporation.
Nio scores well on the Momentum metric, but offers poor Growth. Nio also boasts a favorable price trend in the Short, Medium and Long Term. For more such insights, sign up for Benzinga Edge Stock Rankings today!
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