LeEco LeSEE concept-11

According to a Bloomberg report, LeEco is currently experiencing problems with its finances, with company CEO Jia Yueting apologising to shareholders via a lengthy letter, pledging to reduce his income to just one yuan (RM0.63).

The company, which has plans to penetrate the United States electric vehicle market via its strategic partner, Faraday Future, is said to have been overeager in its expansion. This includes diving into other business such as online media, smartphones, televisions and various other ventures.

“No company has had such an experience, a simultaneous time in ice and fire. We blindly sped ahead, and our cash demand ballooned. We got over-extended in our global strategy. At the same time, our capital and resources were in fact limited,” Jia wrote in a letter.

From an automotive standpoint, the lack of funds could jeopardise LeEco’s upcoming vehicles, including the autonomous LeSee, Faraday Future’s all-electric model, and Aston Martin RapidE.

In a memo, Jia also singled out the company’s car division for reckless spending, saying it had spent 10 billion yuan (more than RM6 billion) in early development. “Our fundraising ability isn’t strong. The scale of our external fundraising had trouble satisfying the demands of our rapid expansion,” Jia wrote.