Shares of Evergrande New Energy Vehicle Group Ltd fell fresh on Tuesday, which this year wiped more than $80 billion in market value from the electric-car maker.
The Hong Kong-listed company – which at its peak in April was worth more than Ford Motor Co., despite not yet having a car on the market – is mired in woes at its native China Evergrande Group. The property developer on Tuesday said it is facing “tremendous” liquidity stress as it grapples with liabilities worth $300 billion.
Evergrande also said it has made “no material progress” on plans to sell a stake in its electric-car unit, which was once one of its most valuable assets. Evergrande NEV stock fell as much as 28% to HK$3.70 in Hong Kong trading on Tuesday. It is down 95% from its highs.
In its earnings report last month, Evergrande NEV — which stands for New Energy Vehicles — said it may have to delay car production until it can secure more capital in the short term, allowing Tesla Inc. as its ambitious goal to unite as The biggest EV manufacturer is even more unlikely.
The dip is a far cry from the prime days of last year and earlier this year, when the stock capped an astonishing 750% rally, becoming the poster child of bubbles in EV stocks as investors poured money into the likes of Tesla and Chinese startups. US-listed shares of Auto Inc., Xping Inc. and NIO Inc.
As recently as April, the Evergrande NEV made a splash with an expansive showroom in the center of the Shanghai Auto Show. But while nine models were on display, none are yet available for sale, and the prospect of mass production is fast fading away.
This story has been published without modification in text from a wire agency feed. Only the title has been changed.
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