Chinese electric vehicle startup Byton has applied to register a new tech company as part of ongoing efforts to resume its China operations halted in July because it couldn’t pay the bills.
The new firm, named Shengteng, expects to get a business license by the end of August and plans to raise 2 billion yuan ($289 million) to accelerate the mass production of the M-Byte, Byton’s first car in trial production, according to a report by Beijing Business Today.
FAW Group and other shareholders are actively pushing forward with the new financing plan, the report said.
The news comes as Byton’s Chinese young peers, including Nio, Li Auto and Xpeng, have already started delivery of their electric vehicles. Nio and Li Auto are listed on the New York Stock Exchange and the Nasdaq respectively, while Xpeng is preparing for its upcoming trading debut in the U.S.
On the last day of June, Byton announced the suspension of its China operations for six months starting July 1 to conduct a corporate reorganization after being unable to pay employee salaries, which the carmaker attributed to fallout from the Covid-19 pandemic.
Contact reporter Ding Yi (yiding@caixin.com)
Related: Electric-Car Startup Byton Halts Operations for 6 Months Amid Cash Crunch
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