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Faraday Future’s Jia Ignores Order to Return to China
Jia Yueting, founder of internet entertainment giant LeEco, has defied demands by regulators in China to return by the end of 2017, Reuters reports.
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Jia Yueting, founder of internet entertainment giant LeEco, has defied demands by regulators in China to return by the end of 2017, Reuters reports.
Jia resigned as CEO of LeEco (Leshi Internet Information & Technology Corp.) in July as the company’s financial woes grew. But he remains determined to launch Faraday Future Inc., the California-based electric-car company he launched two years ago.
China’s Securities Regulatory Commission ordered Jia to return to China to sort out LeEco’s debts. He tells Reuters that he dispatched his brother to meet with the agency in China last Friday.
Jia says he needs to remain in the U.S. to finalized a new round of fundraising for the company. He insists the company’s 1,055-hp FF 91 electric supercar will go into production by the end of next year.
Skeptics note that substantial hurdles remain. Since its launch, Faraday Future has scrapped a $1 billion assembly plant in Nevada, cut its vehicle lineup from seven models to two and slashed its annual production target from 150,000 cars to 10,000.
In November Bloomberg News reported the company faced a December deadline to raise $500 million. The cash was need to pay unpaid bills and avoid defaulting on a $400 million convertible notes, according to the news service.
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