Chinese company LeEco built a plant in which they invested $1.8 billion and soon after that they have raised $1.08 billion for the development of its LeSee electric vehicle.
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LeEco’s billionaire founder Jia Yueting, who built his wealth from video platform Leshi Internet Information & Technology Corp., said in April financing had been the weakest link for the electric-car project. “It is a symbol of China’s entrepreneurship and emergence in the world”, Liu Gang, an investment committee member at Shenzhen Capital Group, stated during the gala.
LeSEE, which will compete with US-based Tesla’s high-end electric cars, has raised the funding from Yingda Capital Management Co Ltd, Shenzhen Capital Group Co Ltd, Legend Holdings, China Minsheng Trust, Macrolink Group and Hongzhao Fund.
According to battery industry sources on September 19, LG Chem, one of the world’s largest electric vehicle (EV) battery makers, has reportedly struck a large supply deal with Faraday Future, the EV business arm of Chinese internet firm LeEco. Last month, the company had announced that it would invest 12 billion yuan (USD 1.8 billion) to build an electric vehicle plant in eastern China with eventual annual production capacity of 4 lakh cars.
LeEco’s cloud computing and sports unit have completed RMB1 billion and RMB8 billion venture round earlier this year.
NextEV Inc., another Chinese electric-car startup with ambitions of unseating Tesla, previous year raised funds from investors including Sequoia Capital and Joy Capital as part of plans to develop affordable, connected green cars.
“Luxury buyers in China are extremely picky, because cars are an indicator of social status”.
LeEco launched its super auto project back in 2014 with the aim to create a smart vehicle, as part of the company’s ambition to become an ultimate combination of Tesla, Uber, Apple, Amazon and Netflix.
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It has also partnered with British luxury sports cars maker Aston Martin, Chinese automobile company GAC Group and USA electric vehicle start-up Faraday Future.
