In the world of electric vehicles (EVs), competition is fierce, and companies face significant challenges to stay afloat.
One of the most shocking recent developments is the story of Jiuye, a Chinese EV brand partly owned by Geely, Volvo’s parent company.
Once seen as a rising star, Jiuye’s financial troubles have forced it to take unprecedented steps, including selling luxury cars at an astonishingly low price of $2,700, according to Boosted.
Marred By Financial Issues
Jiuye entered the EV market with big ambitions, including the launch of the Jiyue 07, a luxury sedan that even won the prestigious Red Dot Award for design.
However, despite these promising beginnings, the company’s journey has been marred by financial mismanagement and poor sales. To date, Jiuye has sold only 14,000 cars in China, far below expectations.
The company now faces a critical financial shortfall of 7 billion yuan ($960 million).
According to reports from Chinese media, this massive gap in finances was discovered by Baidu, one of Jiuye’s primary investors, during an October audit.
This revelation prompted Baidu to halt further investments, leaving Jiuye in a precarious position.
The crisis has led to employee unrest, with workers storming the company’s offices in December over unpaid salaries and severance packages.
Amid this turmoil, Jiuye made the extraordinary decision to slash prices on the Jiyue 07 to just $2,700, a tenth of its usual cost. The move was intended to generate quick revenue but instead sparked confusion and concern.
Although the Jiyue 07 is a five-meter-long luxury sedan with advanced features and a sleek design, the sudden price drop raised questions about the company’s strategy.
Remaining employees claim they were unaware of the decision, and sales of the discounted vehicles have since been suspended.
Jiuye’s future remains uncertain. With major investors unwilling to provide further support and growing financial instability, the brand’s survival appears unlikely.
