Another billion-dollar startup exploded into bankruptcy: The founder once criticized Apple that was outdated, confirming it would surpass Tesla and bring the automotive industry to a new era!

Jia Yueting – founder of electric car startup Faraday Future has just filed for bankruptcy in the US.

In the proposed debt restructuring plan, Jia said he would use his stake in Faraday Future to create trust for the creditor that he would repay it.

Jia faces a debt of up to $ 2.3 billion. In a statement on Faraday’s website, the company said that Jia’s debts were mostly to creditors in China.

The plan on file for bankruptcy is also designed to help Faraday gather “capital efforts and preparing for IPO”. Depending on the proposed value after the IPO, creditors can get back from 49 to 100% of what they spend.

Faraday is trying to develop an electric car that can be sold commercially in the US and China. The company recently hired Carsten Breitfeld, a veteran boss at BMW, to take over the position of CEO in place of Jia.

Faraday lost a significant amount of cash when they formed an alliance with The9 – an online gaming company earlier this year. In addition, a branch of China Evergrande – a real estate company owned by Hui Ka Yan – the third richest man in China agreed to invest $ 2 billion but later withdrew $ 800 million to hold a 23% stake in Faraday.

Jia has historically made many impressive statements, including saying that one of his startups in China will “outrun” three Internet giants in the country, including Baidu, Alibaba and Tencent.

When he first appeared on television in 2016, he said that Apple was “obsolete” and that his electric car company would “take the automotive manufacturing industry to a new era.”

In fact, Faraday Futures is just a division of the LeEco group founded by Jia. Under Jia’s leadership, LeEco aggressively expanded at a speed that was dangerously fast, engaging in too many industries including movies, smartphones and transportation. An analyst said, Jia has turned LeEco into a mess.

However, regrettably, although only just “rising”, LeEco spent too “violent” to make them fall into a situation of running out of money and worse port life. In mid-2017, 1.2 billion yuan ($ 176.35 million) of assets owned by LeEco, Jia and his wife’s affiliates were sealed by a Shanghai court.

In Faraday’s bankruptcy filing, Jia warned that the company’s IPO plan might not raise as much as expected. In part because “the negative articles related to his debt and an investigation by the China Securities Regulatory Commission with delisting on a Shenzhen Stock Exchange by a company led by Jia operating”.