The electric heavy-duty truck startup Windrose Technology is currently mired in internal chaos, owes significant sums, is entangled in a federal lawsuit, and a truck valued at $285,000 is missing.
Earlier this year, Windrose was seen as a rising star poised to disrupt the global freight trucking industry. The company had secured $400 million in funding, was developing cutting-edge electric trucks, and positioned itself as a direct competitor to the Tesla Motors (TSLA) Semi.
By March, however, the company was in disarray, with CEO Han Wen even inquiring about the whereabouts of the missing $285,000 truck.
Two former employees, Travis Waite and Harold Keller, who were dismissed in January, stated they would not assist in recovering the vehicle unless Han Wen paid their combined $91,000 in unpaid wages and benefits in full. They claim they have still not received the money and the truck remains missing.
The 36-year-old Han Wen, who holds an MBA from Stanford University, denies the former employees' claims, calling the amount they are demanding "baseless."
This labor dispute highlights the deep-seated crises currently facing Windrose. The company previously received significant media attention and was once compared to innovative firms like the autonomous vehicle company Waymo.
Multiple former employees reveal that Han Wen's troubles are ongoing and extend far beyond the typical cash flow pressures common to startups. This Chinese-controlled, Belgium-headquartered company is now saddled with numerous debts, involved in a federal court lawsuit, and is under investigation by U.S. traffic safety regulators regarding its claims of producing trucks in Georgia.
In an interview, Han Wen acknowledged delays in salary payments but stated the company has sufficient capital reserves and is actively expanding in the Americas, Europe, and Oceania. He also expressed that he is facing prejudice and hostility in the U.S. due to his Chinese background.
"My job is to build a great product, not to make everyone like me," Han Wen admitted. "I did hire and expand too quickly and too aggressively."
Han Wen continues to pursue aggressive expansion plans. He claims Windrose has secured over 150 truck orders this year in the U.S., Norway, Chile, and Australia, while also advancing plans for vehicle assembly plants and partnerships in Europe and the U.S.
Han Wen plans to go public this year via a merger with a Special Purpose Acquisition Company (SPAC). "This year is truly our first full year entering the market, and the company will be profitable by year-end," he said.
Notable Technical Prowess
The electric heavy-duty truck industry is still in its early stages. According to S&P Global Mobility data, of the 2.4 million heavy trucks produced globally last year, purely electric models accounted for just over 10%.
Han Wen, who previously worked at a Chinese autonomous trucking company, said he spotted the opportunity during the early 2020s EV boom: "I realized the market needed a better truck."
He founded Windrose in 2022, starting in China before establishing offices in the U.S. and Belgium. Han Wen stated that its first model, the R700, hit the road in China by the end of 2024, with 36 vehicles deployed globally so far.
Windrose trucks are marketed as helping global logistics fleets completely phase out diesel, boasting twice the range of comparable electric trucks from Daimler and Volvo, charging ports on both sides of the vehicle, and a price roughly $100,000 lower than competitors.
Senior Researcher Xie Yihao from the International Council on Clean Transportation commented: "The technical solution of this truck is quite impressive. As a Chinese automaker, it has a highly integrated supply chain and strong cost competitiveness."
Han Wen stated that Windrose's core advantage over competitors is that vehicles are fully manufactured in China before being shipped to local assembly partners in various regions. Company funding comes from venture capital and hedge funds in both China and the U.S.; none of the related investors responded to requests for comment.
Multiple former employees raise doubts: the company is aggressively expanding externally and making frequent partnership promises while failing to pay employee salaries on time.
In Belgium, Han Wen sponsored a basketball team near the Antwerp headquarters to get a photo opportunity with the Belgian Prime Minister. In France, he promised to establish a truck factory, was invited to an industry summit, and took a photo with President Emmanuel Macron suitable for social media.
In the U.S., Han Wen pledged a $15 million donation to his alma mater, Stanford University, contingent on Windrose's successful IPO (Stanford has not responded to this). In a March 2023 interview with The New York Times, he claimed to have simple assembly facilities in California and Georgia, planned a swift IPO, and aimed to build a U.S. factory by 2027.
However, former employees reveal that in reality, Windrose struggled to secure orders in Europe, and underlying operational problems worsened. Several employees stated that without receiving their salaries, they had no confidence to conduct vehicle demonstrations.
Excerpts from Internal Work Chats
Employee Kyle Markey: President Han, when will the overdue salaries be paid? I had a one-hour call with Penske Logistics this morning; they want to arrange a vehicle demo. I can't advance this work without money. I really don't want to miss this opportunity, but I can't make promises to clients I can't keep.
Han Wen: I'm working hard to collect payments and raise funds this week. Thank you for sticking with the company. If it's too difficult to sustain, I completely understand if you look for another job.
By July, all company credit cards were maxed out with no available balance.
Employee Harold Keller: President Han, the vehicle test bench has failed again, potentially affecting the demo in 13 days. Early next week, we also need vector testing equipment to debug the ADAS system for prototype vehicle #1. The equipment lead time is two weeks, which will delay the demo schedule.
Han Wen: I just made a payment to the test bench supplier; Jason Giese, please resubmit a streamlined payment request for the CANoe equipment, and I will process it within 24 hours.
By August, salary delays persisted.
Employee Jason Giese informed Jacob Vaca and Travis Waite: The company has notified that this week's salaries are postponed to August 15th. I deeply apologize for this.
Han Wen: The decision to delay everyone's salary is mine. I will pay all historical salary arrears, this week's technician salaries, and the current wages due on August 15th in one lump sum on August 15th. Thank you all for your patience.
Product Trust vs. Leadership Trust
In May of last year, Operations Director Kyle Markey complained about unpaid wages in the company chat. In March of this year, Michigan labor regulators ordered Windrose to pay nearly $10,000 in back wages and interest. Han Wen said he would pay but disputes the amount and may file a countersuit.
In October last year, then-head of North American operations, Jason Giese, hired a lawyer to demand unpaid wages. He claims he was fired days later and has filed a federal lawsuit. In January this year, a judge ruled that Windrose must pay $413,000 in back wages and severance.
Neither Han Wen nor Windrose appeared in court for the hearing; Han Wen stated he would appeal the ruling, arguing Giese was fired for cause. Giese's attorney, Michael Pitt, countered that the dismissal was retaliatory, stemming solely from Giese demanding unpaid wages.
Multiple former employees raise the same question: With Windrose having secured massive funding, where did all the money go?
Han Wen stated he has never concealed the company's financial situation: "I was indeed overly optimistic, a common shortcoming among entrepreneurs."
In previous interviews, Han Wen said the company had raised a total of $400 million. Recently, he revised this, stating the company currently has $100 million in equity funding and a $200 million credit line, while still working on a new $100 million equity financing round.
"The core of a business is not hoarding huge amounts of cash, but using funds efficiently to achieve positive cash flow profitability as soon as possible, not just saving money," Han Wen explained regarding the fund usage logic.
Simultaneously, Han Wen faces more regulatory scrutiny. Windrose currently has four heavy-duty trucks in the U.S., with at least two having Vehicle Identification Numbers (VINs) indicating they were manufactured in Georgia, though Han Wen admits the vehicles were actually produced in China.
A representative from the U.S. National Highway Traffic Safety Administration (NHTSA) stated that regulators are requesting Windrose to submit additional materials. Misrepresenting a vehicle's country of origin can result in civil penalties of up to nearly $28,000 per violation.
Han Wen blamed the VIN mislabeling on a former employee, stating the company has always clearly informed customers that vehicles are made in China and will complete compliant registration subsequently.
Jason Royce, a former employee of Nikola who later served as an external advisor to Windrose, said the VIN falsification raises doubts about all information the company submits to regulators, including safety-related vehicle filings.
"Falsifying a VIN label shows disregard for the entire industry compliance and regulatory process. Once this kind of problem occurs, it immediately casts doubt on the authenticity of all the company's compliance filings," Royce said.
Former driver and technician Travis Waite, whom Han Wen accused of refusing to cooperate in recovering the truck, said the company owes him nearly $30,000 in wages. He stated that with every salary delay, Han Wen would provide an excuse while promising a quick resolution.
"I believe in the truck product, but I never truly trusted Han Wen as a person," Waite said.
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