With tesla motor hitting the news consistently, one would have thought it never had any major competition, I mean the business world is not so fair that everyone would fold their hands and just watch you be the big brand everyone is hailing, and there are people whose aim will just be to pull down your brand and reign in your stead.
Elon was working hard on his electric car invention and he had dedicated workers giving it their shot, according to one of the interviews I read, he spent sleepless nights working very hard with his team, but then a company came up to challenge the existence of tesla, with the name ‘’Faraday Future’’, but we are no longer hearing about it anymore because it went into bankruptcy just after three years.
The rise and fall of faraday future.
The co-founder of faraday future is Jia ‘’YT’’ Yueting who was a billionaire and a tech entrepreneur, he had an intense system of borrowing money for business and with this act, he was able to get sufficient funds for his invention and faraday future came into lime light very fast as at that time.
This ambitious entrepreneur has been doing well with a lot of inventions over the years, he was successfully able to produce an online streaming platform which happened to be his major breakthrough point called Letv, and this streaming platform was in existence for three good years before Netflix came into existence, it was after the huge success of this online streaming platform that this billionaire began to channel his wealth to other areas like the phone industry, production of smart bicycle and electric cars which all were formed under a brand name called ‘’Le Economy’’.
As at 2015, Jia ‘’YT’’ Yueting was spending billions of money on trying to produce electric cars and even opened a multimillion electric car factory in the same region where tesla motors was located, the Le Eco brand was moving fast into phone production, t.v and others, Jia ‘’YT’’ Yueting wanted to take over the future and he wanted every of those products of the future to be owned by his company- Le Economy, completely taking over google, apple and tesla.
While he continued to go into almost every tech region, the only one that was generating profit for him was the streaming t.v, he had been borrowing from a large percentage of small investors in China with the promise of a very good return and low risk but Jia ‘’YT’’ Yueting, could not keep up with his promise since the business was not bringing in the returns he had expected. The angry small business owners and investors wanted to get their money back and Jia ‘’YT’’ Yueting was given an order to present himself in court, instead of doing that he ran away from China and he seek refuge with Faraday future in California, but even the company did not have the financial capacity to save him from the debt.
As at 2017, the court in China blacklisted Jia ‘’YT’’ Yueting and this made investors very sceptical about doing business with faraday company, he had to step back although news has it that he is still a part of the company, he no longer holds the front role or handles finance and he still lives in California because he has to pay back the debt he owes if he needs to go back to China.