Statement Regarding Inaccurate Headlines

Last week, a blog posting suggested Karma Automotive was considering filing for bankruptcy. The story contained numerous falsities and misstatements of Karma’s directional strategies and capabilities, disclosed by an anonymous ‘source’ within the company.

This post, along with a similar piece that was posted on April 23, 2020, both contain falsehoods and misrepresentations. The fictitious nature of this content can be readily identified by simply referencing the timeline described in the earlier piece.

Karma is not considering Chapter 11 bankruptcy and Karma will not be paring its staff to 38 employees in contemplation of a bankruptcy filing.

The entire auto industry was hit exceptionally hard by the pandemic. Yet despite these challenging conditions, Karma will be aggressively focusing on pursuing ambitious and exciting opportunities capitalizing on its unique technologies, products, and solutions. Our shareholder, The Wanxiang Group, fully approves of these pursuits and has granted additional financial support.

We are collectively living through the most terrifying crisis of our lifetime, and we remain firmly committed to doing everything we can to support our retail partners, collaborate with our suppliers and business partners, and creating a valuable future in the mobility industry.

Thank you for being with us. Rather than believe fake news designed to garner cheap clicks and sell ad space, believe your own eyes and ears. If you have any concerns, please reach out to us.

We are here today, we will be here tomorrow, and we will be better than ever before.

Looking forward to building this future together, with you.

Warm regards,

Karma Automotive