Cover Story: Baidu-Geely Joint EV Failure Reflects Treacherousness of Chinese Market

Ji Yue Auto’s powerful backers couldn’t save it from price wars or missteps

Ji Yue Auto — an electric vehicle (EV) startup backed by Chinese tech giant Baidu and automotive powerhouse Geely — disbanded overnight, leaving hundreds of employees, suppliers and consumers reeling. What started as a rising star in China’s competitive EV industry collapsed in a single day, triggering industry-wide alarm and raising questions about how a company with such formidable backers could meet such a sudden and dramatic end.

Just days before its demise, Ji Yue was still expanding aggressively, opening new stores and rolling out tech updates. Employees were on business trips and headquarters buzzed with activity. But behind the scenes, the carmaker was unraveling. In a video call on Dec. 11, CEO Xia Yiping revealed unpaid employee benefits and offered a grim ultimatum: resign for uncertain severance or take indefinite unpaid leave. The message was clear—Ji Yue was finished.