Faraday Future Looking To Raise $1 Billion As Main Backer LeEco Struggles

Faraday Future is reportedly looking to raise $1 billion in a bid

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by Michael Karkafiris

May 25, 2017 at 14:30

Faraday Future is reportedly looking to raise $1 billion in a bid to protect itself from the financial problems of its main backer, Chinese tech giant LeEco.

The electric car startup has already started meeting with potential investors and is looking for advisers, according to a source with direct knowledge of the matter who spoke to Bloomberg.

LeEco is currently dealing with cash starvation, following a very rapid expansion with businesses all over the spectrum, including electric cars, smartphones, TVs and a Netflix-like streaming service.

Jia Yueting, LeEco’s founder, who recently stepped down from his role as CEO of the streaming service, has invested over $300 million of his own money in Faraday but will not be putting up any more capital.

That’s why Faraday is now targeting large investors in order to complete its funding in the next couple of months.