Chinese billionaire Jia Yueting (pictured above), the man behind LeEco, admitted the technology company is running out of money in a prolonged letter to employees, reports Bloomberg. Since Yueting is behind Faraday Future, the future of its electric SUV to take on the Tesla Model X seems in doubt.
To solve the company's lack of money, Yueting, according to Bloomberg, plans to cut his annual income to roughly 15 cents (1 yuan), advance the company towards more modest growth, and slow LeEco's rate of expansion. In the letter, Yueting stated, "we blindly sped ahead, and our cash demand ballooned." LeEco's rapid growth and ambitious plans have, as Reuters points out, led to "signs of big company disease."
It's not surprising to hear that LeEco is short on cash, as the technology company entered so many fields at once. The company recently introduced a host of products for the US market, including mobile phones, televisions, and electric bicycles, and announced plans for a range of electric cars. LeEco, especially with its vehicles, had some lofty goals. Its EV, the LeSee, will be an autonomous car with its own magnetic charging system and external display, assuming it actually ever goes on sale.
On the Faraday Future side, the company's 1,000-horsepower FFZERO1 concept was outrageous in every way possible. While it was drastic and drew a lot of attention, it didn't do anything to mark the company's future in EVs.
In addition to trying to introduce its own electric cars, which included a plan to build a $1.8 billion factory, LeEco also had a partnership with Aston Martin for a production variant of the electric RapidE concept. With LeEco's financial woes, we'll have to wait and see if Faraday Future brings its production-ready car to CES.
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To solve the company's lack of money, Yueting, according to Bloomberg, plans to cut his annual income to roughly 15 cents (1 yuan), advance the company towards more modest growth, and slow LeEco's rate of expansion. In the letter, Yueting stated, "we blindly sped ahead, and our cash demand ballooned." LeEco's rapid growth and ambitious plans have, as Reuters points out, led to "signs of big company disease."
It's not surprising to hear that LeEco is short on cash, as the technology company entered so many fields at once. The company recently introduced a host of products for the US market, including mobile phones, televisions, and electric bicycles, and announced plans for a range of electric cars. LeEco, especially with its vehicles, had some lofty goals. Its EV, the LeSee, will be an autonomous car with its own magnetic charging system and external display, assuming it actually ever goes on sale.
On the Faraday Future side, the company's 1,000-horsepower FFZERO1 concept was outrageous in every way possible. While it was drastic and drew a lot of attention, it didn't do anything to mark the company's future in EVs.
In addition to trying to introduce its own electric cars, which included a plan to build a $1.8 billion factory, LeEco also had a partnership with Aston Martin for a production variant of the electric RapidE concept. With LeEco's financial woes, we'll have to wait and see if Faraday Future brings its production-ready car to CES.
Related Video:
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