WM Motor, a promising Chinese electric vehicle startup, filed for bankruptcy on Monday, effectively signaling the end of a once-promising standout in China’s electric vehicle market.
According to the filing, the bankruptcy case is currently under the jurisdiction of a Shanghai court.
"WM Motor's planned reorganization will introduce strategic investors from across the globe to achieve its rebirth," the company posted on its official Weibo account Tuesday.
Founded 2015 by automotive expert Freeman Shen, WM Motor was regarded as one of the emerging Chinese electric vehicle startups, alongside Nio (NYSE:NIO), Li Auto (NASDAQ:LI), and XPeng (NYSE:XPEV). The company garnered support from prominent entities such as the Chinese tech giant Baidu (NASDAQ:BIDU) and Shanghai's state-owned asset regulator.
In recent years, WM Motor found itself entangled in operational challenges stemming from the impact of the pandemic, a sluggish capital market, significant fluctuations in raw material prices, and difficulties in securing the necessary capital for ongoing operations and development.
In September, the U.S.-listed pre-owned car retailer Kaixin Auto Holdings (NASDAQ:KXIN) announced a non-binding acquisition term sheet with the struggling electric vehicle manufacturer.
This deal came as a response to WM Motor's unsuccessful attempt at a backdoor listing through a reverse takeover with Apollo Future Mobility, a Hong Kong-listed company.
The breakdown of the Apollo Future Mobility deal was viewed as a survival strategy for WM Motor, following two previous unsuccessful attempts to secure listings on Shanghai's STAR Market and in Hong Kong.