LeEco Breaks Ground On $3 Billion Factory In China

5 months ago by Steven Loveday 19

leeco-lesee-10

LeEco LeSEE

We have seen many reports that Faraday Future (of whom recently debuted its 378 mile supercar in Las Vegas) may be in trouble. Production is currently halted on its Las Vegas factory, reportedly due to the fact that the company is behind on bills. This hasn’t stopped Faraday’s parent company, LeEco, from breaking ground on its own $3 billion car factory in China.

LeEco LeSEE

LeEco LeSEE

The China-specific factory is ear-marked to produce the LeEco LeSEE.  The 4,300 acre site slated to house a three-fold production facility, is currently under excavation.

The plan is for a car factory, a battery factory, and an electric-motor factory, working in tandem to produce 200,ooo cars a year initially. When it’s all done and functioning at full force, it is supposed to be able to produce 400,000 cars a year.

Cars News China is skeptical as to whether or not this can happen. The publication has observed the excavation, but aside from that, not much. The report said:

“There doesn’t seem to be any coordination, or any trucks to haul the earth away. And anyone can rent these things for some 1200 yuan (less than $200) a day.”

Also mentioned was that CEO Jia Yueting is not a popular person in Beijing right now. Added to this, missed the groundbreaking ceremony and no one is sure where was he was at the time (outside of mahbe Las Vegas we suppose). He was around when announcements about the upcoming factory were revealed to the public. Jia is known for loving such ceremonies, revels in fame, and jumps at an opportunity to take the stage (though he could be embarrassed about his last stage appearance for LeEco), so his absence was apparently noteworthy to Chinese media.

Let’s not forget to mention the fact that a report revealed that LeEco has yet to get a government license to actually produce vehicles. Being that it is illegal to move forward without a license, LeEco should be going through the process to acquire one as soon as possible. It is strange for automakers to break ground and publicize plans without taking care of the license process first. Maybe Jia was busy taking care of the paperwork instead of attending the groundbreaking?

Source: CarNewsChina

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20 responses to "LeEco Breaks Ground On $3 Billion Factory In China"

  1. John says:

    Curiouser and curiouser…..

    1. ¯\_(ツ)_/¯ sven says:

      That should be LeCuriouser and LeCuriouser…..

      1. Kdawg says:

        Or starting to smell like Pepé Le Pew

  2. MTN Ranger says:

    If LeEco/FF/Lucid combined all of their money and engineering they would probably be more successful.

    1. Pushmi-Pullyu says:

      If the entrepreneur behind both FF and LeEco is as galactically inept as he appears to be, then that would be about as useful as rearranging the deck chairs on the Titanic.

      For those posting positive things about this guy, I have to wonder just how clueless and inept someone has to be before you realize that the guy has no business trying to manage anything more complex than a lemonade stand… if even that.

      It may be that Jia Yueting has many talents. Who knows? Maybe he has great artistic talent, or perhaps he’s a fabulous singer. But successfully managing a business is very clearly not something he can do, and the sooner he stops, the sooner he’ll stop wasting money and other resources which could better be spent on almost anything else.

      1. Yogurt says:

        https://en.m.wikipedia.org/wiki/LeEco

        I guess all of the clueless and inept people who still hve two brain cells to rub together can figure out that Mr I cant run a lemonade stand does happen to be the founder founder and CEO of a a multi billion dollar company but keep on trolling all non Tesla EV companies…

        Now he did get vastly carried away expanding in multiple different directions at one time but the fat lady certianly hasnt sung yet…

        1. Kdawg says:

          Yet another Tesla/Musk parallel, where Elon was going in 3 directions. Somehow Elong is pulling it off, but I don’t know if Jia has the salt. He sure has the cash though.

        2. Pandish says:

          Things not on that wikipedia page sadly are the weird make-belief math that features on every recent statement from Le Eco. Something that in the US or Europe would not fly but this is a Chinese company.

          The heavy reliance on raising capital and acquiring new companies with implicit guarantee from CCP connections but not generating revenue to cover the costs for that capital. People give Tesla and Solar city grief on that return on investment metric but those are completely acceptable once you see that Le Eco has burned through tens of Billions without getting a core business that is in any way profitable to pay for that.

          Moreover as early as the start of 2016 Le Eco’s founder said he’d overextended and could not support the continued expansion. After that he has been hit with increased capital controls ( which means even if his netflix China equivalent brings some money he can’t transfer it ) and his costs to issue debt have drastically increased.

          So yeah. The previous poster was right. That guy can act like a certain figure in the US but the reality is he hasn’t really returned any money to anyone and is only at this point not because of realistic skill or acumen but due to heavy backing from Chinese officials who pegged his conglomerate as a pet project and threw money and generated interest. The People’s daily does a lot of that btw. The bubble last year was cheered on by them. Until 4 weeks ago they were showing the world how stable their housing market was by posting videos of people fighting at housing auctions. Then at speed they turned around and said BUBBLE.

          Le Eco should be approached with scepticism.

          1. Yogurt says:

            Yes it is blantly obvious that he over extended which h he admitted and most start ups do that and so to do established companies…
            And yes it would be entirely suprising if FF is sucessful in 10 years…

            It would also be suprising if any of the others startup auto companies survive which is why goliaths like Google and Apple didnt have the balls to start their own auto companies…

            But the “EV fans” who pile on companies with FUD like “he cant run a lemonade stand” I do not and hopefuly never will understand…

            Maybe you guys are happy when EV companies fail so that is what you cheer for, so more legacy companies can sell ICE machines…

            Because you people I do not understand…

            And FYI I have never run into a billion dollar lemonade stand so yeah FUD…

            1. Pandish says:

              Le Eco isn’t a company. It’s an accounting scheme.

              We’re not cheering an EV company failing, we’re lamenting an accounting scheme making one of its subsidiaries look like an EV company and that real EV companies will be hurt for it when Le Eco collapses ( it is already not servicing its loans ) and taking advantage of gullible who haven’t figured out they are not a real company.

        3. Pushmi-Pullyu says:

          “…keep on trolling all non Tesla EV companies…”

          It’s only the cult of anti-Tesla FUDsters who keep trying to make everything about Tesla.

          I would welcome any real competition for Tesla. Right now, the closest thing to that is the Chevy Bolt, and I’ve made plenty of positive posts about that car.

          Companies with galactically inept management, like Faraday Future, won’t ever offer any competition to any real auto maker.

          1. Yogurt says:

            Pointing out your FUD for non is not making this about Tesla…
            And I am the farthest thing from anti Tesla if you pay any attention…

  3. ¯\_(ツ)_/¯ sven says:

    Pics/video of bobcats or it didn’t happen. 😉

  4. Carl says:

    Who cares if a Chinaman blows his own money in China!! This not news.

    1. Kdawg says:

      Because we all live on different planets??

    2. Pushmi-Pullyu says:

      Obviously not all the money for LeEco comes from that one backer. If it did, then they would have no need to advertise until they actually have a product to sell.

      Startups advertise to attract investor money, and it seems unlikely that all of LeEco’s investors live in China. Furthermore, LeEco has reportedly been siphoning money out of Faraday Future, which is based in the U.S.; FF’s investors likely have an even higher percentage of non-Chinese investors.

      1. carcus says:

        FF was never intended to manufacture on us soil, it was just a front to garner needed intellectual property ,,, the manufacturing was always planned to take place with cheap Chinese labor.

        conspiracy guy, out.

  5. Rich says:

    It goes without saying that the world needs to transition off of oil. If the major automakers won’t pull their head out of Big Oil’s backside, then God bless these companies willing to risk large capital in making EVs. I wish LeEco all the best.

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