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LeEco In Trouble? CEO’s Alleged Internal Letter Says Company Facing Cash Crunch

by Joe 51

We all know ‘LeEco’ which is aggressively expanding into so many ventures, offering amazing products at affordable pricing. But it’s not easy expanding ever so quickly especially when you are operating not just in your domestic market, but entering large markets such as the US. Now, it has come to light that all things are not going so well for the company.

LeEco Logo

According to an internal letter sent by LeEco CEO Jia Yueting, obtained by Bloomberg, the company is reportedly facing cash crunch. The CEO reportedly sent the letter on Sunday explaining about the company’s difficulty is sustaining the fast growth powered by its recent ventures.

While the parent company Leshi Internet Information & Technology Corp. is listed on the stock exchange, other ventures such as its auto department as well as smartphone department are unlisted.

lesee electric car

Cash crunch is never a good sign for a venture and it wasn’t surprising to see LeEco’s shares tumble today at the Shenzhen Stock Exchange. But Jia says that the management will work on corrective measures such as slowing down the existing aggressive expansion. He even said that he will reduce his yearly income to just 1 Yuan (15 cents). Other possible measures to be taken by the company mentioned in the letter include  focusing on existing business, decreasing subsidies to customers, and implementing other cost-cutting programs.

READ MORE: LeEco LeSEE Pro Electric Car Launched in the US (Pictures)

This letter was widely shared on Weibo today and soon it educed a response from Xiaomi’s CEO (or so it seemed at that time), as a screenshot of a Wechat message with Lei Jun commenting about the debts of LeEco emerged online. This further led to a response from LeEco criticing Xiaomi and Lei Jun for spreading rumors. For this, Xiaomi’s official spokesperson replied asking LeEco to focus on its debts rather than distracting public from it.

Now, some think that this screenshot is fake and is not from Lei Jun, but the Xiaomi CEO is yet to comment on this matter. Neverthless, this internal letter revealed today from LeEco’s CEO will surely damage the reputation of the company and it’s venture to some extent.

Let’s wait for more details on this matter.

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  • jimberkas

    well, they’ve certainly been very ambitious. hope it is something they can remedy, they are showing pretty good promise.

    • princetom

      Yea. Will gladly invest in this company. Soon, Chinese smartphone will be xiaomi vs le eco. And its gonna be lovely

  • almir

    LeEco’s CEO with a xiaomi phone!!???
    If you can judge from the screenshot…!😎

  • MaxPower

    Lol, that’s not the real Lei Jun.
    That’s a mythomaniac that goes with the disqus name of “The Beloved chairman Lei Jun” pretending to be the real Lei Jun.He writes few useless comments here and other sites too.

    • Beloved Chairman Lei Jun

      Oh my dear thx for mentioning me dearest of friends

      • MaxPower

        Anytime buddy

    • Saith

      And @balcobomber25:disqus said this “Beloved” also is not the real Lei Jun.

  • njren

    Wonder if they’re wishing do-over on that $2 billion they just spent on Vizio.

  • balcobomber25

    The fake Lei Jun strikes again.

    • Beloved Chairman Lei Jun

      Hello my dear, good to see u, pls note that i am infact the real Lei.

      • balcobomber25

        I talked to the real Lei Jun he said he doesnt use Disqus and can’t type in English….

    • jimberkas

      did you buy a Pro 3?

      • balcobomber25

        I did not. I was going to but they only had gold available. I really don’t like gold phones.

        • jimberkas

          yeah, i hear ya there. I’d have to pass on gold as well.

          • balcobomber25

            Maxpower bought one. I might actually pick up the S3 in the next Flash Sale. $149 is hard to pass up for everything it offers.

          • loller

            What is S3? LeEco pro 3?

          • balcobomber25

            LeEco Le S3. It’s the midrange offering from LeEco for the US market. It’s basically a Le 2 with a SD652. It’s normally $249 but for the flash sales it’s only $149.

          • MaxPower

            I’ve received the phone today and I’m going to share my first impressions with you.

            The phone is very nice built, as you know I like dark phones better but this gold is not terrible. What’s terrible is the black border, it’s really thick and noticeable, a true punch in the eye.

            The UI isn’t bad, it kinda reminds me MIUI, but I installed Google now launcher to hide their live services that I don’t care.

            In my opinion the phone should stay at $299 because the OP3 and the Axon7 are superior.
            In fact the camera is average at best, pretty disappointing for a flagship wannabe.

            I’m also a little disappointed by the battery life: after the RN3 I couldn’t picture myself downgrading to a 3000 mha battery and that’s why I ended up buying this phone, but the battery life is not even close to the RN3.

            Audio is spectacular, it’s so freaking loud whether you use earbuds or speakers
            and i love the Dolby Atmos.

            At the end of the day I’m happy with the phone though, it’s a good buy for the money (as long as it stays at $299) but If I had to recommend a deal then I would say go for the S3 at $149… That’s the real deal!

          • balcobomber25

            I used to think the same about the black lines on my Nextbit, after about a week I didn’t even notice them anymore. Now I only notice them if I think about them. I think I am gonna get the S3 tomorrow. I don’t really need a camera because I have the Honor 8 which is excellent.

          • balcobomber25

            How is their streaming service? Is it up and running yet?

          • MaxPower

            I have no idea, they wanted my credit card to activate the 3 months trial.
            No thanks :-p

          • balcobomber25

            I just ordered the S3 lol. Got it with an extra case and tempered glass for $160.

          • MaxPower

            Can’t beat it for that price

          • balcobomber25

            How long did shipping take for you?

          • MaxPower

            6 days

          • balcobomber25

            Thats not too bad

          • MaxPower

            It’s a FedEx standard shipping. It shipped from California and took 2 days to get to NJ. From there to my house it took the longest also because there was the weekend in the middle.

          • balcobomber25

            They already shipped mine. That is probably the quickest I have ever had with a Chinese phone. Estimated time is 5 days.

          • MaxPower

            They ship the same day you buy it. They did it with me. You’ll get them by Tuesday.
            Tomorrow evening you’ll get the FedEx tracking number. It should stop in Oklahoma, Illinois, Pennsylvania and then to your location.

          • balcobomber25

            I found skins for the Le2 (same exact phone with an X20 instead). I ordered a few for the front in darker colors that will kinda of hide the black borders.

          • MaxPower

            AliExpress?

          • balcobomber25

            Gadgetzhieldz. They had them for a few LeEco phones, not sure about the Pro 3 though.

          • balcobomber25

            My S3 shipped from NJ, supposed to have it Tomorrow!

          • MaxPower

            That’s cool! You’re gonna love it, I finally get 4G.

          • balcobomber25

            haha how efficient was the SD650 on the RN3?

          • MaxPower

            Extremely. Very powerful (I don’t play videogames) and delicate with the battery.

          • balcobomber25

            Yea i am not a gamer. The 808 which I used in both the Nextit and Nexus 5X was terribly inefficient.

          • MaxPower

            I’ve just got the first OTA update, two days after I’ve received the phone.
            I’m really impressed, seriously.

          • balcobomber25

            Just got mine about 20 minutes ago. Wow! Wow! Wow! The sound is incredible with the included headphones and Dolby Atmos.

            I haven’t had sound this good on a phone since my last Vivo.

          • MaxPower

            You got yours faster than I did.
            The sound with their earbuds is very good but I don’t like the shape of them, it took me a while to figure out which one goes on the left and which on the right rear. I’m dumb, I know it lol.

            I’m using my Xiaomi Hybrid with the adapter and the sound is incredible.
            The phone speakers are also very loud.

            I’m very happy with the phone, so far I only got an issue with Bluetooth.

          • balcobomber25

            Mine was shipped from New Jersey so it only took 2 days. They must have two warehouses. I hate the design of the headphones, that type never really fits in my ears right. I ordered a pair of USB C headphones I found on Amazon, waiting to get them. I also love the case I got with the phone, not the cheap plastic one, I ordered an additional silicone one and it feels great in the hand.

          • MaxPower

            I remember spending almost $200 for a Cubot. Now look at what you get for $149. Lol

          • balcobomber25

            That was back when Xiaomi was the only one offering $400 flagships.

          • MaxPower

            You have to give them credit that they have lowered the bar and then many had to adjust to their prices.

            If I remember correctly you own a pair of Meizu EP 51. Am I right?
            How are they? I need to get one pair for the wife stocking and I won’t be able to get the last Xiaomi in time so I was wondering if these Meizu are good.

          • balcobomber25

            Without Xiaomi there would be no OnePlus, Axon or these phones we have. A lot of people give OnePlus credit for the $400 flagship. Xiaomi was doing it beforeal anyone.

            I have the Meizu HD50 on ear. For the price of around $50, they are very good.

          • MaxPower

            I bought the Xiaomi ones on GearBest, they had them available

          • balcobomber25

            I have original Xiaomi Piston got them free with one of my Xiaomi phones either the Mi3 or Mi4. Still use them on occasion

          • MaxPower

            That phone is a steal.
            For that price you can only get an outdated Elephone on presale for 6-10 months

          • balcobomber25

            I am looking forward to just try out the UI and audio.

  • jimberkas

    damn, i feel bad if this is a fake story. its starting to crop up on twitter and many other new sites

    on a positive note, my S3 arrived today!

  • Achilles

    By far my favorite chinese mobile phone company,
    they deserve much more.

    I cant believe that chinese people buy much more Oppo instead for LeTv – LeEco.