LeEco breaks ground on $3 billion electric car factory

It remains to be seen if LeEco or Faraday Future will ever be able to ship a car or end up taking the entire LeEco empire with them.

@LanaJelic
Published Fri, Dec 30 2016 9:32 AM CST   |   Updated Tue, Nov 3 2020 11:57 AM CST

LeEco has been on a quite precarious ground as of late, partially because their CEO is having issues with some of his other startups, including Faraday Future, an electric car company in the US. However, Faraday Future and LeSee the car division of LeEco are not the same company although the technology in LeSee has been developed by Faraday.

LeEco breaks ground on $3 billion electric car factory | TweakTown.com

There have been many doubts about Faraday Future's capabilities and future as a company since they have yet to release a product. However, LeEco is still moving forward with their $3 billion electric car factory in China. This is after the company's own CEO Jia Yueting admitted that perhaps LeEco has overextended itself across too many markets. As of right now LeEco makes phones, TVs, bicycles, VR headsets and cars. All of these markets require significant capital and human resources and it appears that LeEco may have stretched themselves too thinly.

In September, LeEco got $1 billion to bring its electric and self-driving cars to the Chinese market, but still falls short of the $3 billion necessary to complete the factory. That also doesn't account the funds Jia or his investors will need to also get Faraday Future on track to deliver a car and not implode before they finish their development for LeEco's LeSee car.

Jia wasn't present at the ground-breaking ceremony as he was in California overseeing Faraday Future who is currently in crisis after many executive departures. It remains to be seen if LeEco or Faraday Future will ever be able to ship a car or end up taking the entire LeEco empire with them.

NEWS SOURCE:electrek.co

Lana has a passion for technology and science. She spends her time looking for the latest and most interesting technology and science news. Her passion is in gadgets, wearables, and other cool and interesting applications of technology or science. She also spends her free time gaming in MMOs like World of Warcraft. She has prior experience covering technology for publications and breaking news. If she’s not doing either, you might just find her exploring the metaverse in VR. Lana wants to expand TweakTown’s coverage of mobile, wearables and gadgets while also bringing her experience with science and general tech to TweakTown. Her area of coverage is around science, technology, smartphones, wearables, and general neat gadgets. She hopes to one day be able to drive around in her self-driving car while she schedules an appointment for a SpaceX trip to the moon on her smartwatch.

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