Embattled EV startup seeks new investors as parent-company LeEco falters.
Californian electric vehicle (EV) startup Faraday Future, a company that can never seemingly get its act together, is now on the hunt for new investors as its main financial backers appear to be facing financial turmoil. A source revealed to Bloomberg that the company is looking for about US$1bil in funding to bring its FF91 to fruition.
These plans to look for outside funding come as its main backer, LeEco CEO Jia Yueting is going through some degree of financial restructuring. What we know already is that Jia has invested something to the tune of US$300mil (or about $403mil) to get Faraday Future up and running, though it’s unlikely that he’ll be able to invest any further as his company has run into severe financial issues.
LeEco, described as the Netflix of the East, started out with media streaming and consumer electronics. However, under Jia’s leadership, the company then sought to expand rapidly into overseas markets, including North America and India. Its overeagerness to grow put immense strain on its finances, and as it begins to let go large numbers of its overseas staff (reports say some 75% of its US workforce has been laid off, though FF remains unaffected), the company will likely be devoting resources to stabilising its core business, and has backed out of land purchases and rumoured corporate acquisitions.
Faraday Future, similarly, has continued to face issues since its inception. Progress at its Nevada manufacturing facility is either at a standstill or progressing very slowly, while it continues to reassure its employees that the issues being faced by LeEco will have no effect on Faraday Future’s day-to-day operations. You can read up on Faraday Future’s numerous roadblocks and stumblings here.
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