It seems like thing may not be going well over at LeEco. Bloomberg reports that the company’s Co-Founder and Chairman, Jia Yueting sent a letter to employees in which he admitted that the company is running out money due to its rapid expansion. He also apologised to shareholders and pledged to reduce his income to CNY 1 (approx. Rs. 10), slow LeEco’s pace of expansion, and move the company towards a more moderate pace of growth.
“No company has had such an experience, a simultaneous time in ice and fire. We blindly sped ahead, and our cash demand ballooned. We got over-extended in our global strategy. At the same time, our capital and resources were in fact limited,” Yueting said in the letter.
This comes just a few weeks after the company entered the US market. The company launched a bunch of new products in the country including smartphones, TVs, smart bikes, VR headsets, and self-driving electric vehicles. The LeEco Le Pro3 would be the company's flagship smartphone in the US and is priced at $399 (approx. Rs. 26,600), while the LeEco Le S3 would be the second offering by the company and is priced at $249 (approx. Rs. 16,400).