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Ideal Motor has secretly applied for IPO in the United States, raising at least $500m in the first half of this year, Reuters reported, citing people familiar with the matter.

In fact, the ideal car has already made a move on IPO. Ideal Motors started IPO as early as last summer and hired Goldman Sachs as the underwriting bank to lead the deal, according to people familiar with the matter. Last month, ideal Automobile withdrew a number of shareholders, from 42 shareholders to 25 shareholders, including Tianjin Lanchi Xinhe Investment Center (limited partnership), Ningbo Meihua Mingshi investment partnership (limited partnership) and Hubei Meihua Shengshi equity investment partnership (limited partnership). At that time, ideal Automobile CEO Li also admitted that the purpose of the company's internal adjustment was to prepare for listing.

If IPO succeeds, ideal Automobile may become the second new car manufacturer to go public with IPO after NIO Automobile. However, even if the new power of car building comes to market, it will still take a long time to break even. Take NIO as an example. Since its official listing on the New York Stock Exchange in September last year, NIO has been valued at about $6.4 billion, but its shares have fallen more than 40 per cent since its listing.

Since its listing, the company has yet to break even. According to the third-quarter financial report, its revenue in the third quarter was 1.8368 billion yuan, an increase of 21.8 percent from the previous month and 25.0 percent from the same period last year. The net profit in the third quarter of 2019 was 2.554 billion yuan.

In response to the news that ideal car secretly applied for IPO in the United States, ideal Automobile said it would not respond.

The ideal car, which has been established for more than four years, officially delivered the first mass production hybrid car, the ideal ONE, to users in December last year, but there was a problem as soon as the ideal ONE was delivered. Some car owners report that the ideal ONE has the problems of vehicle emission control system failure, vehicle unable to increase speed, power battery failure and instrument black screen while driving.

Official survey results show that some of the problems are caused by system false positives and delivery errors, although it did not cause great losses, but there was a problem as soon as the new car was delivered, which did leave a bad impression on many users.

After the twists and turns in delivery, the ideal car officially announced its delivery results on January 2. A total of 1000 cars were delivered from December 4 to the end of December, and the first month production also reached 1530.

Like most of the new car-building forces, the ideal car is still a "bottomless pit" in the face of capital needs. In August 2019, ideal Automobile completed 530 million yuan of C-round financing, and now the cumulative financing has reached 1.575 billion yuan.

IPO may be the best choice for financing the new power of car building, but it is still unknown whether the ideal car can successfully go to the IPO in the United States in the face of the severe car market and the need for funds.

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