Chinese EV manufacturer Levdeo files for bankruptcy after financial breakdown

By Greg Gao

(JW Insights) May 8 -- Levdeo(雷丁汽车), a Chinese electric vehicle (EV ) manufacturer also known as “Letin,” has applied for bankruptcy and reorganization, the latest information from Tianyancha, a provider of Chinese corporation data and due diligence platform, showed on May 5.

In November 2022, multiple media outlets reported that Levdeo failed to deliver vehicles after it had received full payment, and owed over RMB20 million($2.9 million) to more than 30 dealers. The EV startup was suspected to be on the verge of bankruptcy.

In January this year, Li Guoxin, the founder of Levdeo, accused a local official of manipulating Levdeo sales figures and pressuring the company to overstate capacity and sales value for local political achievements. 

Another industry insider confirmed that the EV manufacturer had encountered a liquidity crisis and production capacity challenges as early as 2021. Since the second half of 2022, the brand’s dealers across the country have visited the company and requested a payment refund but with no success.

Information on Tianyancha also revealed that Levdeo’s recent legal cases have surged. The total amount involved in lawsuits in which the company is the defendant is as high as RMB206 million($29.8 million).

Levdeo was founded in 2008, and is based in Weifang, eastern China’s Shandong Province. It was originally a low-speed electric vehicle company. Levdeo acquired Yema Auto in order to enter the full size electric vehicle market in 2019.