How The Man Who Challenged Tesla Went Bankrupt

In 2015, Faraday Future was a California-based electric car startup with deep pockets in China and world-conquering ambitions that it assembled seemingly out of thin air. A star-studded cast of top Tesla executives. Hello, Lamborghini, BMW, Ferrari, Volkswagen, Ford on Google, united behind. a forward-thinking vision to jump-start the connected autonomous electric car ecosystem or develop a subscription service for cars or invent a powertrain that can be mounted on any type of vehicle or put this Batmobile car into production, wait if they are really well into the Faraday futures of 2015. The actual plans were a mystery, but with a workforce of 1,500, over a hundred employees poached directly from Tesla, one foot firmly planted in Los Angeles, and a deal for a billion-dollar factory of dollars in Nevada, Faraday's Future was ready to kill Tesla where it was, but by Faraday's Future in 2018 it had burned through billions of dollars and was struggling to stay in business, and almost all of it is due to this co-founder from Faraday Futures. and simultaneously caused his downfall in three short years.

This is how the man who

challenged

Tesla

went

bankrupt

. shayateen or whitey as he was called began his career in the 1990s as an official in a local tax district which he left to start a host of businesses ranging From coal to cell phones in 20 years he would be the 17th richest person in China with a net worth of $7.3 billion. His most successful venture was a streaming company called late Evie, which launched its streaming video service in 2004, three years before Netflix. After the success of Leyte V, Whitey and developed other lines of business: smartphones, televisions, sports programming, financial products, smart bicycles and even electric cars, all under an umbrella brand called Lay Eco or Lay Economy, while the activities of the eCos seemed unrelated.

The Whities saw an opportunity to give consumers everything they could want in an electric car that they could drive, call their friends, have a business meeting or watch sports all in a small, stylish package. Lei a Co in 2014 Whitey co-founded the future of California-based Faraday Whitey would spend hundreds of millions of dollars developing a car from Faraday's future and eventually plan to open a billion-dollar factory in Nevada, the same state where Tesla was building its Giga Factory, meanwhile, in In 2015, Whitey led an aggressive campaign to expand organic products in the United States by opening 80 thousand acres. campus in San Jose, California, hired more than 300 Silicon Valley employees and acquired American television maker Vizio for $2 billion in 2016, allowing eco to launch its flagship smartphone, the lay pro 3 and the lay s3, and a smart television, the Eco TV, with the aim of competing.

Tech giants Apple and Google in the US market and none of these companies were making money for Whitey, with the exception of the Lei She streaming service, formerly Late TV, none of the Lei eCos 7 businesses were profitable according to Bloomberg, so why? where did all that money come from? some of Whitey's pockets, but many more came from lenders in China, as the New York Times reported. Whitey found more than $2.1 billion in cash in this report in two different ways: One, by simultaneously courting small working-class investors by promising them good rates of return. and also downplayed the risks, turned to channels and traded in China's shadowy shadow banking system, where hardly any regulations existed, understandably, there was a huge backlash when Whitey failed to deliver on his promises in April 2017. 37 small business representatives organized A sit-in at Lake Hello demanded that the lady go pay the 10 million dollars they were owed.

Leggo responded by filling his lobby with potted plants to keep angry creditors away during his targets, which he ignored to appear in court in 2017 and instead fled China for his last chance to gather something. of money, although the consequences of his debt were too great and far-reaching for Faraday's future to save him. In 2017, the court in China placed Whitey on a debt blacklist. The blacklist is a way to publicly slap the wrists of fluent Chinese businessmen and try to prevent them from spending recklessly, but more importantly, Whitey's name on that list meant investors were less interested in doing business with Faraday's future;

In fact, Stefan Kraus, Faraday's future CFO was offered financing deals that were strictly dependent on Whitey stepping down or giving up a controlling part of the company, it's just because T didn't want to give up control and Faraday's future desperately needed the money, but after three years the company didn't even have a car to sell, remember that 1,500-person workforce, while The Verge reported that Faraday insiders said the company didn't even have work to do in 2018. Faraday's future burned cash and couldn't find another financier laid off a large portion of its employees and applied for financial assistance.

In October 2019, Joe filed for Chapter 11

bankrupt

cy according to the notice, Whitey accumulated more than $6.6 billion in debt in total, while we paid only $3 billion. This story ends on a hopeful note. Today the future of Faraday is still alive and continued to develop. its first announced production car, the FF 91, and has attempted to pique Reese Park's interest in keeping a stream of images of the car on the street and, by testing on Faraday's future YouTube channel, the company has a new CEO, a man in charge of the BMW I Program and co-founder of Biden automobiles, Karsten Brite Feld Brite Feld expressed a renewed commitment to Faraday Futures' mission to use the technology that FF has developed so far to transform the automotive industry and, As for Whitey, he still lives in a mansion in California.

He is still involved at Faraday as a senior official in charge of design, although he is no longer a financier of the company. In a statement on Twitter, Whitey apologized for his mistakes, namely not paying his debts. He also mentions how important it is for him to return to China to pay off his debts and make Faraday's future a successful venture. It's easy to see that Whitey had all the tools to create a revolutionary automobile company. If you look around, you'll see that Whitey's 2014 vision of a smart, connected electric car ecosystem was spot on. His bravery and charisma are the same as Elon Musk, who kept Tesla afloat in difficult financial situations with vision and enthusiasm alone.

Faraday's future could easily have been as successful as Tesla, just the decision to continue for so long without seeing cash and never making concessions was unsustainable. Whitey says that the success of a company depends on the decisions it makes. It seems like Whitey just made some bad decisions.