Nio has received a reply from the police today saying they have arrested the person suspected of creating and publishing the fake rumor about its bankruptcy.

Chinese police have arrested the person responsible for creating the rumor about Nio's (NYSE: NIO) bankruptcy, as the electric vehicle (EV) maker ramps up its efforts to counter false information.

Nio received a reply from the police today saying they have arrested the person suspected of creating and publishing the fake rumor about its bankruptcy, according to a statement today.

The company expressed its appreciation for the police's multi-location coordination, prompt response and efficient enforcement, Nio said, adding that it will cooperate with further investigative efforts to identify the organizers behind the rumor.

Against the backdrop of the Nio brand delivering more than 20,000 units for four consecutive months and continuing to lead the premium EV market, the company found on August 30 that a large number of malicious rumors of “Nio declaring bankruptcy” were spread in some WeChat groups and social media platforms, the statement noted.

This had a serious impact on the company's reputation and normal operation. In response, Nio called the police at the first time to defend its rights and interests by legal means, it said.

Nio said it welcomes tips from all walks of life to combat fake online rumors and will offer rewards.

In the false rumor that appeared on August 30, some texts suspected to be written by AI (artificial intelligence) claimed that Nio had declared bankruptcy, which triggered a lot of discussion.

Such rumor is easy for those who know Nio to determine that it is false, but is likely to raise concerns among some about the company's prospects, which in turn could drag down vehicle sales.

Nio said on August 31 that these actions were suspected to be a serious violation of the law and that it had called the police.

Nio has previously had a high tolerance for false rumors and has not usually taken a hard line. Starting last year, the company began to take the threats seriously as the number of false rumors that could affect vehicle sales increased.

It 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.

Nio reports to police over 'bankruptcy' rumor