LeEco Auto's failure has brought Jia Yueting one step closer to shattering his dream of building a car

Previously, the resignation of LeTV Auto co-founder Ding Lei and the capital chain problems that LeTV has always had made people begin to look down on LeTV and express concerns about its future.

Even so, many people still hope that LeTV Supercar can be successfully developed and fulfill Jia Yueting's dream of making cars. However, ideals are full, but reality is very skinny.

Faraday forced to terminate plans for second car factory

According to the San Francisco Chronicle website, local officials in Vallejo, California, confirmed that Faraday's plan to build a car factory called "Mare Island Naval Dock" in the local area has been terminated with the local government.

Faraday will next focus on building its first factory in North Las Vegas, which is expected to be completed in 2018, city officials said.

In response, Faraday released a news release saying that Faraday "would like to express our gratitude to the city and its officials for their generosity and professionalism throughout the negotiation process, and looks forward to exploring future collaboration opportunities with the city."

However, LeEco has not yet released any comments on this news. Therefore, there is no doubt that Faraday was affected by LeEco's capital chain problems.

The second car factory has no chance, will the first one repeat the same mistakes?

Speaking of Faraday, the first time it was known to the Chinese was because of its cooperation with LeEco. And it is well known to industry insiders because after LeEco invested in it, Faraday once vowed to challenge Tesla, the leader in the electric vehicle industry. However, it is now in crisis.

Faraday Future is a private company headquartered in Los Angeles, and its first car factory is located in Nevada. Regarding the progress of the first car factory, Faraday Future said last month that it was bidding for construction companies, and later issued a news release saying that Faraday would fulfill its commitment in Nevada and would not change its $1 billion investment plan in the region from beginning to end. However, in fact, Faraday's first car factory also encountered some problems.

According to local officials in Las Vegas, Faraday's car factory in the city will be significantly reduced, with its floor space reduced from 280,000 square meters to 60,000 square meters, and its production capacity will be reduced from 100,000 to 10,000 vehicles.

However, Faraday stated that the first factory will be built in batches, but since Faraday's investor LeEco is now in trouble, it seems that the construction of the first car factory is still full of uncertainty.

Leaning on LeEco, but the thighs were gnawed to be "skinny"

At present, LeEco can be said to be in a difficult situation. Not only is it facing serious financial problems, but also one crisis after another.

LeEco has been at the center of controversy since its inception, because no one expected that a video website would become a company of this size. However, even for such a company, negative news has continued since 2016. LeEco owed money to suppliers, LeEco Sports laid off employees, LeEco Auto had financial troubles, and Faraday Future stopped production. In short, it seemed that this company was going to fail at any time and it would be difficult to survive the difficulties.

LeEco's ecosystem is like a bubble, people leave and the tea is forgotten, and the dream of making cars is difficult to realize

Many people think that the reason why LeEco ended up like this is because LeEco kept using PowerPoint to build the LeEco ecosystem. The reason is that LeEco was eager to expand despite its unstable foundation. It started as a video website and then entered many fields such as television, smart phones, electric vehicles, and online sports live broadcasts, which led to an imbalance in diversification and brought about the problem of insufficient capital chain.

But Jia Yueting has always had a dream of making cars. As early as 2014, he revealed his "See Plan" on Weibo, and publicly expressed his ambition to surpass Tesla, saying: "In just three years, many parameters of our test cars have exceeded expectations. We have surpassed Tesla in key indicators of test cars." However, due to the unreliability of LeEco's ecosystem and the capital-intensive business of making cars, LeEco has suffered a nightmare of capital shortage.

Although Sun Hongbin, chairman of China Financing, was willing to invest in LeEco, LeEco Auto's funding problem has not been solved. Most of the money Sun Hongbin promised to invest has not yet arrived, and Sun Hongbin also said at the press conference, "I will help LeEco with whatever money it needs, but not LeEco Auto. I don't understand cars."

In short, car manufacturing is a capital-intensive business. Although LeEco has stated that it will invest 40 billion to 50 billion in its electric car project, many investors now see LeEco's ecosystem as a bubble and are no longer willing to invest. So, whether Jia Yueting's dream of car manufacturing can continue to have enough capital blood injection remains a mystery. If things go wrong, the dream will really be shattered.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.