, WM Motor indicated that it has grappled with operational issues in recent years. It said in a statement on its Weibo page that production and sales did not sufficiently cover expenses, reverse losses, and service its debts.
This move came after WM Motor’s earlier attempt at a backdoor listing through a reverse takeover with Hong Kong-listed Apollo Future Mobility fell through. The unsuccessful listing endeavors in Shanghai’s STAR Market and Hong Kong were perceived as last-ditch efforts for the company. Shen attributed the company’s troubles to COVID, the market downturn, supply chain challenges, and a sharp rise in raw material costs. He wrote to employees, “I hope you all understand, and together we can survive the winter.”
WM Motor was founded in 2015 by Shen, a former executive at Geely and Volvo. It was initially viewed as an emerging star among Chinese electric vehicle startups, boasting of prominent backers such as internet monopoly Baidu, tech giant Tencent, and a Shanghai’s state-owned asset regulator. It is also one of the few Chinese EV startups that has developed its own battery and electric powertrain technologies.