Home / Business and Economy / NIO Stock Plunges Over 13% Amid Singapore Wealth Fund Lawsuit
NIO Stock Plunges Over 13% Amid Singapore Wealth Fund Lawsuit
16 Oct
Summary
- NIO stock drops over 13% in one day
- Lawsuit filed by Singapore's sovereign wealth fund GIC
- GIC alleges NIO misled investors with false statements
On October 16, 2025, the Chinese electric vehicle maker NIO saw its stock plunge over 13%, marking its biggest one-day drop in around six months. The steep decline came as investors grew concerned over the company's outlook following a lawsuit filed by Singapore's sovereign wealth fund GIC.
According to the lawsuit, which was filed in August in a U.S. district court, GIC alleged that NIO and two of its executives had misled investors by making false statements and withholding crucial information about the company's business and prospects. This led to significant losses for investors.
The news of the lawsuit, first reported by Chinese financial magazine Caixin on Wednesday, sent NIO's stock tumbling to as low as HK$47 (around $6.05), its lowest level since September 11. The stock was the biggest percentage loser on Hong Kong's Hang Seng Tech Index and Hang Seng Automobile Index, which fell 1.5% and 1.7% respectively.
Neither NIO nor GIC provided any comments on the lawsuit on Thursday. GIC is one of the world's largest sovereign wealth funds, managing foreign reserves and investing globally across various sectors, including technology and infrastructure.
