Jiyue Automobile faces bankruptcy crisis, shareholders withdraw investment

According to insiders, the main reason why Jiyue Automobile fell into trouble was that shareholders withdrew their capital and stopped investing money, and the previously promised financing did not arrive. Due to the shortage of funds, Jiyue Automobile owed a large amount of debt, including payments to suppliers and communication and marketing expenses of media companies. Several people familiar with the matter believe that the main reason for Jiyue's flash crash was Baidu's withdrawal of investment. Baidu insiders told Caixin that the company had sent a financial team to Jiyue in October 2024 to conduct due diligence in preparation for the subsequent 3 billion investment: "It turned out that Jiyue was a mess with a financial hole of up to 7 billion, and decided not to continue investing."