Text | Mantis Observation

As the year draws to a close, rumors in the automotive industry are once again vying for attention.

Recently, rumors circulated that Jiyue planned to lay off 40% of its staff, with its CEO fleeing and senior executives such as the COO and head of vehicle manufacturing having already resigned. On the evening of December 2, this news was denied by Jiyue's legal department. Jiyue responded:

"We have recently noticed that some individuals have been spreading false rumors about Jiyue's management and operations on the internet, which have had a detrimental impact on the company's normal operations. We hereby solemnly state that the company's current operations are proceeding as usual, and all relevant information is released through official channels. Regarding these rumors, we have retained evidence, reported them to the competent authorities, and have taken necessary legal measures to further hold the rumor-mongers accountable. We urge everyone not to believe or spread rumors."

In fact, the rumor about Jiyue's CEO fleeing does not hold up to scrutiny. On November 30, Jiyue CEO Xia Yiping was live-streaming the delivery of over 100 vehicles, and he even gave a TED talk on December 1. Regarding the scars on his face, Xia Yiping responded positively during the live stream, stating that they were the result of an accidental fall while cycling, and were clearly different from bruises caused by physical altercation.

Previously, Jiyue employees also shared their November pay stubs on social media platforms, showing that salaries were paid on time and in full on November 29. Regarding the rumors of layoffs, the employee stated that they had not heard of any such news internally and that it was only being spread externally.

Moreover, as an automotive company jointly founded by three powerful giants - Baidu, Geely, and Contemporary Amperex Technology Co. Limited (CATL) - Jiyue's sales have been steadily increasing over the past six months, with a sixfold increase in sales between June and October this year. In this context, it is hard to believe the rumors of layoffs.

Coincidentally, NIO, Xpeng, and Tesla have all been subject to rumors of layoffs and even bankruptcy before, which were later proven false. Rumors of layoffs and bankruptcy have become an annual year-end ritual for new energy vehicle companies.

Steady sales growth, promising future for Jiyue

The rumors of 'Jiyue layoffs' are undoubtedly baseless. Since the second half of this year, Jiyue's sales growth has been robust. Jiyue 01's sales have doubled since the second half of the year, and Jiyue 07 surpassed 5,000 orders within 48 hours of its September launch. The cumulative deliveries of both models from January to November have exceeded 14,000 units, a remarkable achievement.

On November 29 alone, Jiyue delivered over 100 units of both the Jiyue 01 and Jiyue 07, earning the title of 'fastest-growing new force of the year.' Although overall sales in November showed a slight decrease from October, the overall upward trend remains clear and stable.

Jiyue's ability to maintain steady growth is supported by its intrinsic strengths.

Both the Jiyue 01 and Jiyue 07 exhibit distinctive features and advantages in personalized design, hardware configuration, intelligent cabin, and intelligent driving, aligning with the aesthetic and travel needs of young people today while embodying a sense of technological luxury. These factors contribute to the strong overall competitiveness of both models.

For instance, the standout feature of both the Jiyue 01 and Jiyue 07 is their integration of Baidu's ADS pure vision intelligent driving system. This system won four championships, one runner-up, and one third place in 10 competitions at the 'Second China Intelligent Driving Competition,' outperforming all other participating models.

Backed by three giants, Jiyue is unparalleled in China

Another factor that makes large-scale layoffs at Jiyue unlikely is its powerful backing. Jiyue is a new energy vehicle brand jointly founded by Baidu, Geely, and CATL. With a market capitalization of over RMB 200 billion on the Hong Kong Stock Exchange, Baidu, Geely with over RMB 130 billion, and CATL with over RMB 1.1 trillion, there is no more luxurious or powerful shareholder lineup in China.

In terms of products, the influence of these three giants is evident in Jiyue's vehicles. The Jiyue 07 features Apollo intelligent driving from Baidu, motors from Geely, and batteries from CATL, giving Jiyue vehicles exceptional product capabilities.

For example, the Jiyue 01 is built on Geely's HaoHan architecture, boasting a 50:50 golden axle load ratio for excellent handling. It also features a double-wishbone front suspension and a multi-link rear suspension, along with an iRTD real-time damping adjustable shock absorption system. These configurations would typically cost over RMB 500,000 on any traditional luxury SUV.

Looking at the Jiyue 07, its starting price after discounts upon launch in September was RMB 199,900. Equipped with dual Orin-X intelligent driving chips, an 8295 cabin chip, and a 100kW/h battery pack in the RMB 219,900 version, it offers excellent value for money compared to competitors like Xiaomi SU7 and Zeekr 007.

With its high cost-effectiveness, superior performance, and mechanical quality, Jiyue has gained the favor of more and more consumers. The idea that Jiyue would initiate large-scale layoffs at this time is as unbelievable as a vibrant youth choosing to amputate their own legs.

'New Energy Fear' Can Rest

It's not just Jiyue; at the end of each year, rumors of layoffs and bankruptcies among new energy vehicle companies have become a 'reserved program.' NIO, Xpeng, and Tesla have all been subject to rumors of bankruptcy or layoffs.

Earlier in August, rumors circulated that NIO was going bankrupt, which NIO vehemently denied as 'unscrupulous and insulting.' Additionally, Xpeng has repeatedly been rumored to be on the verge of collapse, yet its sales continue to rise.

Many people's fear of new energy vehicles is understandable, as innovation is more challenging than maintaining the status quo. Tesla also faced difficult times around 2018, with Elon Musk even joking on April Fool's Day that year that Tesla had gone bankrupt. However, with time, Tesla has become a global giant in the new energy vehicle industry.

In reality, even if a car company does lay off employees, it is a strategic decision in the course of business operations and does not necessarily mean bankruptcy. However, in the public opinion environment, many people harbor hostility toward new energy vehicle companies, immediately declaring bankruptcy upon hearing rumors of layoffs.

The market needs to be more patient and give new energy vehicle companies more time to refine their products, improve quality, and withstand market challenges, allowing innovators to continue moving forward without fear, abuse, or rumors.

*All images in this article are sourced from the internet