Faraday Future Financier Gets Officially Blacklisted In China
At Faraday Future, it seems to get worse by the minute, and it may all point back to founder and early financier, Jia Yueting.
We’ll spare you the extra words by not recounting the plethora of trouble electric-car startup Faraday Future has faced. Just recently, CFO Stefan Krause moved on and finances are, of course, a mess.
Jia Yueting has been a household name when it comes to Faraday since the beginning. For quite some time, he was the only named financial contributor and was running the company … sort of. He has recently stepped back, stopped shelling out money, and doesn’t seem to be very active with the company.
For a while, it seemed he was going to focus more on parent company, LeEco, which is also reportedly dealing with a mess of problems. But his current role at both companies is sketchy at best.
Hmm … what do these two companies have in common? Jia, of course.
We previously reported that Yueting had fallen out of favor in Beijing, but now we know it has escalated from bad to worse. A court in Beijing, China has added Yueting to its “blacklist.” He owes some $73 million (480 million yuan) in debt to one of China’s largest insurers and investment firms, Ping An Securities.
This blacklist is a place for those that default on their debts. Reportedly, Jia and two other execs from LeEco are now on the top of China’s shaming list. Teslarati reported that local business owners explained that this list was specifically created to publicly shame people who have accumulated large amounts of debt. Further, the court’s list will eventually be transitioned into a system that tracks people’s credit and buying habits, much like the credit score systems in the U.S. Essentially, it’s not a list that you want to have your name on.
Now that Yueting is on the list, he’s basically cut off from any spending aside from minimal daily living expenses. People on this list can’t travel for leisure, first-class accommodations are not allowed, children may not attend private school, and any luxuries like nice hotels, golf outings, and expensive homes or vehicles, are not permitted.
This doesn’t bar Yueting from traveling and using accommodations for business purposes, although that would probably be the best case scenario for Faraday Future and LeEco. No matter how you look at it, it’s a disaster that continues to grow exponentially.