Faraday Future Investor Jia Yueting Ordered to Return to China
Where he must face his financial problems
To put it lightly, it has been a difficult year for Faraday Future. Not only have important executives left the company, but the startup also pulled out of Formula E and threw in the towel on a $1 billion factory in Nevada. And it looks like the company's big investor, Jia Yueting, is having an equally difficult time now that China is pressuring him to face his debt.
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Authorities in China have ordered Jia to return to the country by December 31 to deal with financial issues surrounding the company he founded, LeEco. Late last year, he revealed the company has been spending cash too quickly amid its rapid expansion. The company has its hands in everything from smartphones to video streaming, autonomous driving, and ride-hailing applications. It even partnered with Aston Martin to develop the RapidE before that deal was broken. LeEco has strong ties to Faraday Future through Jia.
The China Securities Regulatory Commission said his failure to deal with the debt represents a "serious infringement" of shareholders' rights. At this point, it's unclear where he is. He is also listed on the nation's blacklist, a system that can prevent debtors from traveling. According to different reports, he owes about $72 million.
On the bright side, Faraday Future has reportedly received about $1 billion in new funding that could help keep it afloat a while longer. However, those reports haven't been confirmed.
Source: Financial Times, Fortune
When I tell people I write about cars, the most common reply I receive is “Really?” I guess I never strike people as a car type as I drive down the freeway in the right lane going 60 mph in my old SUV. My gripes about driving in city traffic and fast drivers don’t help my case, either. For a time, the only cars I liked were old cars. Not old as in "classic" or "vintage," but as in well-worn. My first appreciation of cars came when I drove a very old Ford pickup. It wasn't perfect: I used a booster seat to reach the gas pedal, and the turn signal once fell off in my hand as I was learning to drive. But the thing I valued most was the memories. It took several years for me to truly become a "car person." Being a long-time writer and an avid reader has helped me develop a healthy curiosity and a desire to know how things work. This has made cars one of the most fascinating points of study for me because they are such intricate machines. I am interested in how cars can reach 200 mph, how they can run on hydrogen, and how they can drive and park on their own. I also enjoy learning how cars can solve problems whether it be in the form of reducing pollution, minimizing traffic, or helping people stay connected on the road. Yes, maybe I’m not a gearhead. Perhaps I’m a car nerd. Either way, I very much enjoy writing about cars and helping people stay in tune with the automotive industry. I wouldn't want to be writing about anything else. And don’t get me wrong: I know how to drool over a hot car. I am fascinated by the Tesla Model S, awed by the Lamborghini Veneno, and am hopelessly obsessed with the Audi R8.
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