According to recent reports, China has ordered the electric car startup, Faraday Future’s investor Jia Yueting to return home to eventually face debts amounting to $72 million. The automaker was in the headlines because of its $1 billion inflow netted through a funding program.
This was followed by Jia Yeuting taking over as CEO but the investor now has to return to China to tackle a mountain load of debts accrued by his other enterprises, primarily LeEco.
For quite some time, Jia has been occupied with the investigation into soaring unpaid debts that LeEco owes to its creditors and this is the reason the entrepreneur has also been placed on a ‘debt blacklist’ by the Chinese government.
China Securities Regulatory Commission has now ordered Jia to come back to the country by Dec 31 to address the issue of piling debts. Last year, he revealed the startup was spending cash hastily in a bid to achieve expansion targets.
2017 was a rather gritty and grim year for Faraday Future with top executives resigning and the firm pulling out of the Formula E not to mention the $1 billion Nevada factory saga that was all over the news. The firm already has invested in multiple areas like autonomous driving, smartphones, video streaming, and ride-hailing applications to name a few.