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.
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LeSee,
LeCopy,
LePasta,
LeFoundOut,
LeKO (Kolos Operation)
Crap leadership. Blaming your down line for problems is a classic example of admitting he doesn’t know what is going on.
soon he will have to move to kemama to sell LeKor
A case of money coming too easy and fast. Without realizing what was their core business is about. Of course spending lavishly in the process is a norm for these geeks!!!
Wait and see, first, friends.
It’s business world.
yeah – i am surprised :) :)
I’m wondering whether the car division’s “reckless spending” is real or is it simply that PRC speciality, just make-believe spending (aka money laundering).
Fail tesla wannabes
Pure lack of focus and excessive spending… It be hard to explain what Le Eco does if someone asks..they do a bit of everything..and that is not good strategy for a new company..regardless of cashflow.. it takes years to build a reputation..they just don’t have the brand recognition to be dabbling into so many things…
All these electric stuffs, ini semua poyo..
Copying is a form of flattery agreed, but sometimes it can also be used to “mask” the lack of NURTURED talent.
Bashers here says its okays to copy, in fact its better to copy than try ownself.
They teach their kids, better to copy their frens and score than try ownself yet fail and then learn from failure.