Nio said it has donated compensation it received in several lawsuits over false rumors to the relief efforts for Super Typhoon Yagi.
Nio (NYSE: NIO) said it has donated compensation from several rights defense cases to typhoon relief, as the Chinese electric vehicle (EV) maker’s efforts to combat false rumors continue.
Nio has recently noticed that some self-media outlets have been deliberately smearing and rumor-mongering about the Nio brand and users, infringing on the company’s and users’ legitimate rights and interests and seriously affecting the company’s normal business operations, its legal department said today in a statement posted on Weibo.
Nio has initiated lawsuits in response to the attacks, some of which have already been adjudicated, and the company has been awarded damages, according to the statement.
Nio has continued to donate the compensation it received to support public causes, the company said.
Nio recently noted that some areas were severely affected by Super Typhoon Yagi, and the company has the compensation it received to typhoon relief efforts through the Nio users public welfare foundation, it said.
The company did not mention specific cases, or the amount of compensation received.
Last November, Nio was awarded RMB 300,000 yuan ($42,200) in a lawsuit against a blogger, and the company donated the compensation it received at the time to support public welfare causes including education and elderly care.
In the past few days, Super Typhoon Yagi ravaged southern China, affecting more than 1 million people, according to official Chinese media.
The super typhoon made landfall in Wenchang, Hainan, on September 6, bringing with it strong winds and heavy rainfall, causing the cities of Wenchang and Haikou to suffer nearly RMB 60 billion yuan ($8.4 billion) in cumulative economic losses.
Nio has often been the victim of false rumors over the past few years. The company previously had a high tolerance for false rumors and usually didn’t take a hard line.
Since last year, it has begun to take these threats seriously as the number of false rumors that could affect vehicle sales increased.
Nio opened social media accounts dedicated to its legal department on several Chinese social media platforms in May 2023, when false and bad information about the new ES6 increased dramatically ahead of its upcoming launch.
On August 30, a false rumor claiming that Nio had declared bankruptcy sparked much discussion.
On August 31, Nio said it called the police about the false rumor, and on September 5, the company said it received a response from the police stating that the person suspected of creating and publishing the rumor had been arrested.
Separately, Nio announced second-quarter earnings that beat expectations before the US stock market opened on September 5, sending shares soaring.
At press time, Nio was up 13.78 percent to HK$38.80 in Hong Kong.
Trading on the Hong Kong stock market resumed today after being suspended on Friday due to Super Typhoon Yagi.
($1 = RMB 7.1084)
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