The CEO of LeTV, Yueting Jia, likes to use the word “beyond redemption” to express his feelings and mission for eco automobile but behind this grandiloquence is the hardships related by the car manufacture of LeTV.
When we refer to Internet car, LeTV is generally thought as a mode of “splashing the cash”. on 6th This month, Yueting Jia issued a letter to employees and admitted that the development of the automotive business drag down the whole Letv, causing the capital chain tension.
LeTV investment is nearly 20 billion
Building a kingdom of electric and a dream of Yueting Jia for many years. Recruitment of the research and development production base in zhejiang and the United States are proceeded in a rapid speed. Unfortunately, the longer ecological chain and features of car plate all need lots of funds, following is the problem of share prices fell and capital shortage.
Fortunately, Yueting Jia confirmed that his personal investment in LeTV car is more than one hundred million Yuan, and the external financing is 1.08 billion dollars, making his auto dream going on. Recently, Yueting Jia has made reflections on the rapid expansion of each business, he mentioned employees elimination over 10% at the end of the year and all the investment will be slower. Although Letv car seems to be “rich”, whether it can survive is difficult to make conclusions.
Yueting Jia has revealed that his personal investment is more than one hundred billion Yuan and this is the important factor which causes the overall lack of money.
Quick rhythm and global expansion are the main factors to the great demand for funds of LeTV automobile.
For the past two years, LeTV has made strategic cooperation with intelligent Internet electric car companies FF, the British luxury super car brand Aston Martin, and has reached cooperation in the car service and electric business with Gagc. At the same time, the company also puts in time and energy car on networking and smart hardware. In April, LeTV LeSEE concept car exhibited in Beijing, Yueting Jia almost was moved to tears.
However, Just a few days later, LeTV capital chain problem started to appear. Foreign media reported that the future investment companies in the United States is faced with closure for shortage of funds.
Where has the money gone?
Yueting Jia said in an interview that the biggest direction of car investment is three parts: the first is the research and development. Because of global expansion, Yueting Jia directly made the headquarters in the United States. He wanted to integrate global resources and let foreigners to do all the high-end technology. So each year, at least $540 million in research and development must be paid in the United States. In China, the automobile sector also has a scale of hundreds of people.
The second part is the equipment, Beta Car (prototypes) requires a large amount of investment of equipment, now it has entered to the fourth round of testing.
The third part is the capital of factory. At the end of September this year, LeTV holdings announced that nearly 20 billion Yuan investment will be put in ZheJiang national economic development zone. Beside the factory construction, LeTV will also build a super car park and an auto ecological town, realizing automobile theme amusement show and r&d and design experience of super cars “ These three directions’ money demand is very big. ” Yueting Jia said to the media.
Facing financial constraints, Yueting Jia has to slow down the investment progress. Despite the huge investment, Yueting Jia has great confidence in kingdom in building the electric kingdom. In order to cast the high-tech transport, LeTV auto still imports talents continually. With luxury talent team, Yueting Jia claimed that LeTV will be more comfortable than tesla cars.
However, in the middle of October, Apple changed the short-term plan of electric car, abandoned car development temporarily, and concentrated on developing self-driving technology software. So, will super talent and huge amounts of money investment achieve the dream of LeTV?
