Faraday Future founder wraps up personal bankruptcy

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BEIJING — Jia Yueting, founder of Leshi Internet and electric vehicle maker Faraday Future, said on Thursday his personal bankruptcy process was complete and that a trust would be established to compensate Leshi shareholders.

In a stock exchange filing, however, Leshi said it had not heard from Jia regarding a compensation plan or a related arrangement. It added it was unable to verify whether shareholders would be compensated.

The entrepreneur is well-known in China for building a video-streaming business into an electronics manufacturer, before starting Faraday Future with ambitions to overtake Tesla Inc.

However, the cash-intensive enterprise forced Jia to file for bankruptcy in October with personal net debt of around $2 billion. To date, Faraday Future has only produced a small number of test models.

In a post on Chinese social media platform Weibo, the former executive said the bankruptcy process ended on June 26, and apologized to investors and creditors for any financial loss.

Jia, currently “Chief Product and User-Eco Officer” of Faraday Future, also said fundraising for the EV maker was “going well”. The automaker plans to “quickly complete an initial public offering soon,” Jia said without elaborating.

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Saurabh Shukla

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