Chinese EV maker Neta Auto faces financial trouble, highlighted by a lawsuit from supplier Efort who claims the company owes 48.2 million yuan (US$6.7 million).

On November 7, Neta Auto, known as Hozon in China, began layoffs due to difficulties in meeting payroll obligations, as reported by company insiders to Caixin.

Despite plans to list on the Hong Kong stock exchange, Neta has incurred considerable financial losses between 2021 and 2023, totaling 17.2 billion yuan (US$2.4 billion). In 2022, the firm reported a negative gross margin of 14.9%.