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Faraday Future parent LeEco warns of financial troubleby Justin King
Recent reports indicated the company is having trouble paying for its $1 billion factory in Nevada.
LeEco chief executive Jia Yueting has reportedly warned employees that the company is facing financial trouble and must cut costs.
The internal letter, cited by , blames the problems on an unsustainable growth pace and organizational limitations that have led to "an apparent lack of momentum" in different segments.
The Chinese billionaire founded LeEco mode than a decade ago, initially experiencing success as a content provider for online video. The company has since launched its own smartphones and outlined plans to enter the US market.
LeEco recently unveiled the futuristic LeSee concept, an autonomous electric vehicle with a retractable steering wheel and five large display panels.
Yueting is also behind Faraday Future, a startup that appears to be testing a production EV (pictured) and already broke ground for a $1 billion factory in Nevada. The company's financial stability has been in doubt even before Yueting sent the dire warning to employees. A recent report highlighted a dispute with a construction contractor over an alleged $21 million overdue payment.
It is unclear if the cost-cutting strategies will have an immediate affect on LeEco's automotive ambitions.