Report: Faraday Future Raising Money Amid Financial Issues at LeEco

As if it didn’t already have enough to worry about, Faraday Future is bracing for the potential fallout from the recent financial troubles of its main backer. Faraday Future is searching for new investors as China-based tech company LeEco struggles to pay the bills after becoming stretched too thin by too many projects.

LeEco has its hands in everything from TVs, smartphones, streaming video, and ride-hailing services. Last year, it even debuted its own self-driving EV concept. LeEco’s leader, Jia Yueting, recently stepped aside from the flagship streaming service as the company struggles to find its footing.

Yueting has also played an integral role in Faraday Future, investing over $300 million of his own money in the young automotive startup. Now, he says he won’t be offering up any more of his own capital, according to a source cited by Bloomberg.

Faraday Future seeks to raise $1 billion from big-time investors including sovereign wealth funds, the source said. The company hopes to secure the funding in the next couple of months.

The automaker is preparing to introduce its first production car, the FF 91. But there have been plenty of setbacks, with reports suggesting the automaker is low on cash and scaling back its production plans. The company has reportedly decided not to go through with plans for an auto plant in California. Although LeEco is reportedly planning to reduce its workforce in the U.S., officials say the move would not affect Faraday Future’s growth.

Source: Bloomberg

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