China Evergrande EV Unit Struggles to Attract Investors Amid Liquidity Crisis

Evergrande NEV still have financial difficulties, may be acquired by another automaker Evergrande NEV still have financial difficulties, may be acquired by another automaker
Credit: Evergrande NEV

China Evergrande New Energy Vehicle said on Monday it is facing difficulties in securing strategic investors due to a severe liquidity crisis, which has disrupted operations and delayed key audits for 2024.

“The tough conditions under which the new energy vehicle in Mainland China is operating has certainly not facilitated this (securing a strategic investor) process,” the company stated.

See also: China Issues Groundbreaking Insurance Guidelines for New Energy Vehicles

The electric vehicle (EV) unit of embattled property developer China Evergrande (3333.HK) remains in search of investors as it seeks to stabilize its operations and address ongoing financial struggles.

To cut costs, the company has reduced its workforce, but with limited funds, it is now prioritizing basic operations, including the upkeep of its production facilities and machinery.

See also: CATL Forecasts Up to 20% Increase in 2024 Net Income, Despite Declining Revenue

Evergrande’s EV ambitions once positioned the firm as a potential competitor to Tesla (TSLA.O), and at its peak, its market valuation surpassed that of Ford Motor (F.N). However, the company has since been caught in the broader debt crisis affecting its parent, significantly hindering its progress.

Add a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Keep Up to Date with the Most Important EV News

By pressing the Subscribe button, you confirm that you have read and are agreeing to our Privacy Policy and Terms of Use