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.