AsianFin -- Chinese electric vehicle startup Neta Auto is facing a deepening operational crisis, as reports circulate that former CEO Zhang Yong has traveled to the United Kingdom, raising fresh questions about the company’s leadership and financial health.
Several former employees told Chinese media that Neta has delayed payments and compensation totaling nearly 400 million yuan (approximately S$72 million), affecting more than 3,000 staff. The claims include unpaid severance and stock option buybacks.
Zhang, who stepped down as CEO in December 2023 amid what the company called a “strategic adjustment,” was said to have transitioned to an advisory role. Neta founder and chairman Fang Yunzhou assumed the CEO role concurrently. Zhang has not updated his Weibo account since October 14, 2023, fueling speculation over his status.
On Monday (April 14), Zhang posted briefly on WeChat Moments, stopping short of denying he is in the UK. “Thanks for everyone’s concern,” he wrote. “I am still serving as an advisor to Neta Auto and actively helping the company secure financing.”
Founded in 2014, Neta Auto once topped China’s “new energy vehicle” startup rankings, selling 152,000 vehicles in 2022 and achieving a valuation of up to 25 billion yuan. But since 2023, deliveries have plunged sharply. In January 2025, the company recorded just 110 domestic retail sales, signaling a dramatic downturn.
Former employees say they are still waiting for promised compensation following their departures. On Monday, a video circulating online showed a group of Neta’s dealership representatives gathering at the company’s factory in Tongxiang, Zhejiang province, demanding payment. One dealer in the footage alleged: “Since September last year, the company has not responded to us even once.”
According to Chinese tech outlet Tech Planet, sources claim Zhang had secured a UK visa before his resignation and has already relocated there in recent weeks.
The situation highlights the growing financial strain facing China’s second-tier EV startups as they struggle with thinning margins, softening demand, and intensifying competition from market leaders like BYD and Tesla.
