It's a rare scene in the auto industry: Fang Yunzhou, founder and now operational head of Neta Auto, bows deeply before an audience of furious dealers. The video quickly circulated in China, symbolizing a manufacturer on the verge of collapse. The cause: dozens of vehicles never delivered despite having been fully paid for, bonuses not paid since the fall of 2024, and a completely halted after-sales service.
Dealers at the End of Their Patience
Fang Yunzhou promises to get spare parts back on the road before the end of April and to resolve delivery issues immediately. However, for now, no clear roadmap has been published. The malaise dates back to the end of 2023, when the first warning signs flashed: massive layoffs, slashed wages, factories at a standstill, unpaid suppliers... Neta quickly found itself in survival mode.
At this stage, even the sales figures are hurting: barely 487 cars sold in January and February 2025, including fewer than 300 for its flagship model. Not reassuring, especially when you consider that other Chinese startups have already closed shop with better performances.
To get back on track, Neta is taking a gamble: international expansion. Heading to Thailand, where the brand set up shop in 2022. A good move: at the last auto show, it recorded 1,219 orders, and is aiming for 10,000 sales this year. A local factory will assemble the Neta X starting in July. At the same time, the company secured a $215 million line of credit to keep pace.
On the financial side, Neta convinced 134 of its suppliers (including the giants CATL and Gotion) to convert their receivables into shares, for a total of $2.75 billion. In essence, these partners agreed not to be paid immediately, hoping that the brand would recover... and end up on the stock market. A bet far from risk-free.
Other financing is underway. The goal, according to the CEO: to break even in 2025, become profitable again in 2026, and sell as much in China as abroad within two to three years. It remains to be seen whether the drivers—and investors—will still follow the road.
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