Faraday Future founder and Chief Executive Officer Jia Yueting has filed for bankruptcy in the United States and plans to turn over his stake in the Chinese electric vehicle firm to repay his personal debts, the company said.

Yueting’s plan will not affect Faraday Future’s business operations, said the company, which has ambitions to overtake Tesla Inc.

Faraday Future added that CEO Yueting will focus on its U.S.-China dual home market strategy and help prepare for an IPO.

Yueting’s personal net debt is around $2 billion, according to the company.

Faraday Future, which has seen its own share of financial turmoil, but a deal with key investor Evergrande at the beginning of the year resulted in a restructuring agreement and a bridge loan to help keep the company afloat. Faraday Future is developing a luxury electric vehicle called the FF91, which it revealed in January 2017. Since then, the company has canceled plans for its Nevada factory, set a Pikes Peak record, laid off much of its workforce at one point, lost a co-founder and eventually settled with the aforementioned investor.


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