---
title: "China's EV company Evergrande's share sale deal was canceled"  
description: "Evergrande EV Deal Fizzles Out: Funding Hopes Dashed as Share Sale Agreement Lapses"  
author: "Saumya Mishra"  
published: 2024-01-02  
updated: 2024-01-02  
canonical: https://www.mindstick.com/news/3697/china-s-ev-company-evergrande-s-share-sale-deal-was-canceled  
category: "technology"  
tags: ["dubai", "electric vehicle", "deals"]  
reading_time: 2 minutes  

---

# China's EV company Evergrande's share sale deal was canceled

A potential lifeline for [China](https://yourviews.mindstick.com/view/tags/china-vs-india) **Evergrande's** struggling electric vehicle arm has slipped through its grasp, dashing hopes for a much-needed cash injection. The share sale agreement with [Dubai](https://www.mindstick.com/account/630509/register-business-in-dubai)-based mobility company **NWTN**, announced in August 2023, has officially lapsed, leaving Evergrande New Energy Vehicle Group grappling with its financial woes.

- **Deal Collapse:** Neither party agreed to extend the "long stop date" of December 31st, 2023, rendering the share [subscription](https://www.mindstick.com/news/3093/meta-launches-quest-subscription-for-vr-headsets) and loan conversion agreement void.
- **Missed [Opportunity](https://www.mindstick.com/articles/12836/flexibility-and-opportunity-making-the-gig-economy-work-for-you):** The proposed agreement involved issuing 6.18 billion new shares to NWTN for HK$3.89 billion ($498.2 million) - a crucial boost for Evergrande's EV aspirations.
- **Financial Strain Remains:** The lapsed deal adds to Evergrande's financial stress, as the property developer giant continues to navigate a debt [restructuring](https://www.mindstick.com/news/4616/microsoft-cuts-9-000-jobs-amid-restructuring-drive) process.

**Unfulfilled Promise:** The NWTN deal was seen as a potential game-changer for Evergrande New Energy Vehicle Group, providing much-needed capital to fuel its [electric vehicle](https://yourviews.mindstick.com/view/84978/future-of-electric-vehicles-2023-view) ambitions. The company has been aggressively pushing into the EV market but has faced [significant challenges](https://answers.mindstick.com/qa/114957/what-significant-challenges-arise-when-maintaining-updating-large-scale-legacy-software-systems) due to its parent company's financial turbulence.

**Lingering Uncertainty:** With the NWTN deal collapsing, the immediate future of Evergrande's EV arm remains uncertain. The company has not yet issued any official statement regarding [alternative](https://www.mindstick.com/forum/2324/what-is-the-alternative-to-the-mvc) funding plans or the impact of the lapsed agreement on its operations.

**Impact on Evergrande:** The failed NWTN deal is another blow to the embattled Evergrande Group. The property developer is currently undergoing a complex debt restructuring process, grappling with over $300 billion in liabilities. The lack of progress on the EV front adds to the pressure on the group as it seeks to stabilize its finances.

**Market Implications:** The Evergrande saga continues to cast a shadow over the Chinese property market and has broader [implications for global](https://answers.mindstick.com/qa/115043/what-are-the-outcomes-of-the-2025-g7-summit-its-implications-for-global-economic-policies) investors. While the lapsed NWTN deal is specific to the EV arm, it underscores the ongoing challenges and [financial instability](https://answers.mindstick.com/qa/115241/how-is-china-addressing-its-economic-slowdown-and-real-estate-sector-s-financial-instability) surrounding the Evergrande Group.

![China's EV company Evergrande's share sale deal was canceled](https://www.mindstick.com/usernews/655071/a5d2754b-de01-40cb-bf02-2fa9c3fea7b1/images/f91aaa1b-bb1e-4400-8dba-e76679d3f37d.jpg)

---

Original Source: https://www.mindstick.com/news/3697/china-s-ev-company-evergrande-s-share-sale-deal-was-canceled

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