LeEco’s electric car business will stop paying employees wages for the next four months

LeEco’s electric car business will stop paying employees wages for the next four months

Since Jia Yueting’s assets worth $182 million frozen by The Shanghai High People’s Court, LeEco is suffering from a cash crunch, management issues, and an overhasty expansion.

Jia has stepped down as chairman of LeTV and has also given up several other positions at the company. However, he still remains his position as global chairman of LeEco’s electric car business.

LeEco’s electric car ambitions are centered on Los Angeles, where they backed an electric vehicle maker Faraday Future, with more than 1,400 employees. The company is developing high-end electric cars which itself is seeking $1 billion from potential investors to fund its own operations. Unfortunately, they have struggled to pay employees on time recently.

According to insider’s sources, LeEco’s electric car has decided they will stop paying their employees wages in the next four months starting this month. This decision only affects the operation in China, will not include Faraday Future. The source said that the employees are still hanging in there, but it is believed that they will most probably leave for greener pastures soon.

SOURCE