China, the world’s king of electric cars, is hitting a rough patch. Switching from gas-powered cars to electric ones isn’t as easy as flipping a switch, and Chinese car companies are feeling the squeeze.
One sign of trouble is how long it takes them to pay their bills. Companies like Nio are taking almost a year to pay their suppliers, which is much slower than before. This is because there are just too many electric car companies in China, all fighting for a slice of the pie. With more competition comes lower prices, which means less money to go around.
Things are getting so tough that some Chinese electric cars are stuck in Europe, clogging up ports! There are just too many cars and not enough buyers or ways to ship them. This could be a big problem for smaller suppliers who might not be able to wait so long to get paid.
