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LeEco chief steps down from troubled unit to focus on auto dream

Jia Yueting will step down as chairman and board member of Shenzhen-listed arm, after his assets were frozen by a Shanghai court this week

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LeEco founder Jia Yueting unveiled the FF91 electric car at CES International in January this year with Nick Sampson of Faraday Future, an automotive startup that LeEco bankrolls. Photo: AP
Meng Jing

Jia Yueting, the billionaire founder of China’s cash-strapped internet media group LeEco, may have nearly given up many ambitious plans including those surrounding a Shenzhen-listed unit, but not the one to become China’s Elon Musk.

The 44-year-old has not only stepped down as chairman and exited the board of the group’s Shenzhen-listed arm – Leshi Internet Information & Technology Corp, but he will also not take any further role, according to a company statement on Thursday night. Jia remains as Leshi’s controlling shareholder.

In place, Jia has taken the liberty to be the “global chairman” of LeEco’s electric car unit, a business he envisions that could one day challenge Tesla.

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Jia will take full responsibility in leading the car unit towards “revolutionising the century-old automobile industry” by helping it “get financing, build up management team, develop and test products and guarantee a production”, said the statement.

LeEco co-founder Lei Ding provides details about development of self-driving electric cars synched to the internet. Photo: AFP
LeEco co-founder Lei Ding provides details about development of self-driving electric cars synched to the internet. Photo: AFP
The announcement comes as LeEco faces mounting pressure from creditors.
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Starting out as a Netflix-like video streaming service, the Beijing-based LeEco has made expensive forays into smartphones and television manufacturing, as well as electric car development, as Jia believes an “ecosystem” style business model would position the company to compete with Western tech leaders Apple and Tesla.

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