Published on : Jul 11, 2017
Former LeEco Chairman Jia Yueting backed electric carmarker, Faraday Future, have halted their plans to build the US$1.0 billion worth factor in North Las Vegas as the mogul faced strong troubles in its Chinese car business. The plant in Nevada, which has claimed to produce world’s fastest electric car earlier this year, has said to put a halt to its 1,050-horsepower FF91, diverting its promise to beat souped-up versions of Tesla’s Model S sedan.
In a statement released by the officials at Faraday Future, the company will now move to identify an existing manufacturing unit that can speed-up the production as well as aligns with the growth strategies of the company. On the other hand, the industry experts believe that this decision is a repercussion of controversial entrepreneur Jia Yueting, who made a fortune via his Leshi Internet Information and Technology Corp., which was China’s alternative to the Netflix.
Cash Crunched Jia Yueting Feeling the Heat
The struggles to expand his venture onto smartphones, autos, and movies, Jia is facing cash crunch and even stepped down from its board in order to focus on serving solely as the Chairman of LeEco’s auto segment. Chinese court has frozen Jia’s assets worth several billion dollars, asking him to pay the debts without delay.
This development has significantly jeopardized the North Las Vegas factor as the state’s agreement with Faraday requires the company to completely comply with a minimum investment of US$1.0 bn in order to obtain incentives. Though the state recognizes the opportunities brought-in by the large manufacturing unit, the state Treasurer Dan Schwartz has questioned Jia’s plans to borrow finance from multiple business, which is often unsustainable.