Charge Peak, an entity controlled by Larry Krauss, has issued a cease-and-desist letter to Nio alleging infringement of battery-swapping patents. The claim stems from intellectual property originally held by the defunct Israeli startup Better Place. Charge Peak suggests a settlement based on 2% of Nio's projected 2025 revenue, which totals approximately $12.5 billion.

Lawyers for Charge Peak argue that Nio's current infrastructure exploits foundational technology developed by Better Place before Nio even existed. Yosef Abramowitz, the firm's vice-president of finance, claims Israeli expertise helped build a company now valued at $16 billion. This dispute targets the very core of Nio's operational model, which relies heavily on its proprietary swapping stations.

Nio dismissed the allegations as unfounded, asserting its technology resulted from independent research and development. The automaker maintains its systems are materially different from the three patents in question and points to its own portfolio of over 2,200 patents. Charge Peak has set a deadline of June 5 for a formal response to the complaint.