LeEco, the Chinese parent company of South Los Angeles-based electric car startup company Faraday Future, announced today that it would cut back on costs and slow its expansion, according to Bloomberg.
LeEco’s co-founder and chairman Jia Yueting, told employees and shareholders in a letter that the company had grown too fast.
“We blindly sped ahead, and our cash demand ballooned,” wrote Yueting. “We go over-extended in our global strategy.”
The company, which was attempting to compete with Tesla, announced in September that it had raised over $1 billion from Chinese investors to build an electric car.
A call to Faraday Future wasn’t immediately returned.
You May Also Like
- Faraday Future’s Main Backer Receives $1B to Pursue Electric Cars
- Faraday Future Founder Defies Beijing Order to Return Home
- Faraday to Lend Factory to China’s LeEco
- Silicon Beach Report July 10: Asian Goods E-Tailer Yamibuy Raises $10 Million
- Faraday Future Signs Lease on Central Valley Manufacturing Facility
- No Break for Carmaker
- Aecom Halts Construction on Faraday Future’s Las Vegas Factory
- Silicon Beach Report Aug. 12: LeEco Building Plant to Be Used By Faraday Future in China