Chinese automaker files for bankruptcy!

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Chinese electric vehicle startup WM Motor has filed for bankruptcy at a time of fierce price competition in the world's largest car market.

A court in Shanghai is handling the bankruptcy case, according to a filing on Monday with the national corporate bankruptcy information disclosure platform.

"WM Motor's planned reorganization will be introduced to strategic investors from around the world to realize its rebirth," the company said in an official statement on Tuesday.

The automaker reported that it has been in an operational dilemma in recent years due to the impact of the epidemic, stagnation in the capital market, huge price fluctuations in raw materials and disruptions in obtaining capital needed for R&D.

Chinese used car dealer Kaixin Auto Holdings announced a non-binding pre-purchase agreement with WM Motor in September.

Founded in 2015 by Freeman Shen, WM Motor was among China's rising electric vehicle startups Nio, Li Auto and XPeng. The company's investors included Chinese tech giant Baidu and Shanghai's state-owned asset regulator.