Evergrande Billionaire's Car Firm Wanted to Beat Tesla — Now It's Struggling to Survive
- Company has said it’s looking for about $4.2 billion in funds
- Key asset is carmaking license, which may be hard to transfer
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China Evergrande New Energy Vehicle Group Ltd.’s billionaire founder vowed to overtake Tesla Inc. as the world’s biggest maker of electric cars within three to five years back in early 2019. Four years later, the company’s stock has gone from boom to bust and it’s struggling to survive.
Evergrande NEV, the brainchild of Hui Ka Yan — the tycoon behind beleaguered property developer China Evergrande Group — is seeking a lifeline after warning last month that it would need to stop production at its Tianjin factory unless new funds were secured. However, its overtures are getting a lukewarm reception, according to people familiar with the discussions, as some of Evergrande NEV’s terms deter would-be investors.