Chinese electric car developer 'selling Silicon Valley site to meet cash crunch'
Main page News, China, Tesla

Less than a year after paying $250 million for a giant Silicon Valley property Chinese electric car hopeful LeEco is selling the site to ease cash flow concerns.

LeEco began its meteoric rise 13 years ago when it was nothing more than a Netflix type video website.

The company has since expanded to consumer electronics and has set itself the ambitious goal of challenging electric car maker Tesla.

A move to improve cash flow had been foreshadowed by LeEco founder and CEO Jia Yueting, who in November wrote to staff that the firm was facing "big company disease" and a growing cash crunch.

However, selling the Silicon Valley Palace of Fine Arts was probably not the billionaire's first plan.

Just a prior to penning the gloomy letter Jia expressed a desire to establish the company's North American headquarters at the site.

The Palace of Fine Arts will now reportedly go to Chinese developer Genzon Group in a $260 million deal, according to Reuters citing an anonymous insider.

The firm has declined to comment on the reported purchase but according to its website is planning on building a 140,000-square meter office building in Silicon Valley.

Reuters

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