After suffering devastating losses as a result of US sanctions, Huawei may be preparing to pivot to electric vehicles.

Huawei quickly found itself a target of the Trump administration, amid claims the company represented a national security threat. While all Chinese firms are required to cooperate with Beijing, Huawei was widely believed to have unusually close ties with the government and intelligence community. As a result, the Trump administration banned the company from participating in US networks, and there is no indication the Biden administration will reverse those measures.

Other countries have followed suit, including the UK, Australia, New Zealand and Sweden. Multiple governments and intelligence agencies have joined the US in branding Huawei a threat.

The bans and sanction have taken a toll on the company, once an almost unstoppable force in the tech industry. Sanctions against the company have even resulted in it selling its Honor line of smartphones and cutting production of its flagship line, due to not being able to buy enough semiconductors.

According to Reuters, the company is now exploring a strategic shift to electric vehicle manufacturing as a result of the challenges it’s facing. Reuters sources say the company is preparing to make electric vehicles under its own brand, and the first models could arrive as soon as this year.

A company spokesman denied the claims, although the denial left plenty of room for interpretation.

“Huawei is not a car manufacturer. However through ICT (information and communications technology), we aim to be a digital car-oriented and new-added components provider, enabling car OEMs (original equipment manufacturers) to build better vehicles.”