LeTV is the first Chinese technology company to announce it will create an electric car, after China lifted restrictions on companies able to work on cars.

What sounded like a spontaneous announcement has actually been in the works for some time. CEO Jia Yueting visited the U.S. quite a few times to meet with executives from car, Internet and smart home companies.

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Based in Silicon Valley, a team is already working on the design and software for the electric car. Staff from Tesla, Mercedes, BMW, General Motors and Ford will all be working on the design and manufacturing of the vehicle.

The LeTV electric car looks to be an integration of hardware and software, similar to the Tesla Model S. Having software inside the car allows developers to offer new features for driving, like maps, a music player and hands-free calling.

From all of the ex-motors talent on the team, it looks like LeTV will go for a classic car design. The exterior will resemble a modern car, while the interior will be fitted with all types of highly technical features.

Tesla recently introduced all-wheel drive and a self-driving mode, which kept the car at a consistent speed and even move lanes and stopped at red lights. It is the first iteration of Tesla's own type of self-driving.

It is unclear if LeTV will work on its own type of self-driving for the electric car. The company said it would focus on clean emissions, a big issue with the amount of pollution in China.

LeTV is also working on other new devices, like a new smart home platform. The video portal service clearly wants to expand from its humble beginnings into bigger and more daunting markets.

TagsLeTV, Electric Car, tesla motors