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A Chinese autonomous driving startup backed by a major automaker has reportedly halted operations indefinitely. The company informed employees on November 22 that they would be placed on leave starting the previous day, according to staff members speaking to media outlets. The company did not disclose the reasons behind the shutdown or specify a timeline for resuming work. Workgroup chat channels were silenced.
The firm employs nearly 300 staff members across offices in Beijing, Shanghai, Shenzhen, and Baoding. In August, employees in Beijing reported that the company had ceased paying salaries, with two months of wages overdue.
The widespread speculation among employees is that the suspension is due to the company’s failure to meet certain performance benchmarks outlined in a performance adjustment agreement, leading to legal action and the freezing of the company’s accounts, staff members said.
The company has yet to issue a public statement regarding the situation.
Originally a division of its parent company based in Baoding, the startup was spun off in 2019. Its focus areas include intelligent assisted driving systems for passenger vehicles, last-mile autonomous delivery trucks, and smart hardware solutions.
Along with a few other Chinese firms, it was among the first to mass-produce Level 2 and higher autonomous driving systems.
The startup has completed seven funding rounds, with investors such as its parent company, a state investment fund, venture capital firms, and capital management groups. Its valuation exceeded $1 billion after its most recent financing in December 2024. The majority stake of about 37% belongs to the parent company’s chairman.
In October of last year, reports surfaced claiming that the company had halted its plans for an initial public offering, which it denied at the time. A month later, the company confirmed that it had laid off some employees, describing the move as part of normal organizational adjustments.
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