China’s EV war: WM Motor files for bankruptcy, dashing the hopes of investors Tencent and Baidu to challenge Tesla
- Carmaker, whose petition is being reviewed by a Shanghai court, says in Weibo post it hopes to come back by introducing strategic investors from around the world
- WM’s failure ‘a rude reminder’ for other start-up founders and investors that China’s EV market will become tougher for cash-strapped players, Shanghai analyst says

The Shanghai-based carmaker’s petition is being reviewed by the Shanghai No. 3 Intermediate People’s Court, according to a filing published on the national enterprise bankruptcy information disclosure platform on Monday. It normally takes six months before a court in China gives its verdict on a bankruptcy case.
WM said in an official post on Weibo, China’s Twitter-like social-media platform, on Tuesday that it would still aim for a rebirth funded by strategic investors from around the world.
“Among troubled EV start-ups in China, WM is the most well-known, as venture capital and private equity investors placed much trust in [founder Freeman Shen Hui] and its vehicles,” said Ding Haifeng, a consultant at financial consultancy Integrity in Shanghai. “Its failure is also a rude reminder to other start-up founders and investors that the fast-growing mainland Chinese EV market will become tougher for cash-strapped players because a flood of new models will hit the market in the coming two years.”