Faraday Future Production Plant Stopped For Now

Faraday Future is putting its $1 billion factory on hold for now, but the electric carmaking startup has no plans to go tric carmaker startup out of business.

The California-based company announced today that its facility in North Las Vegas, Nev., has halted plans to begin production of its 1,050-horsepower FF 91 electric car. Research is being conducted on an alternative production plant to speed up the launch.

“We are in the process of identifying a manufacturing facility that presents a faster path to start-of-production and aligns with future strategic options,” Faraday said in an emailed statement.

Delaying production plans comes from turmoil faced by LeEco founder Jia Yueting, a financial backer of Faraday Future. Jia last week stepped down from his CEO role at parent company Leshi, a giant Chinese entertainment company. He’ll continue serving as chairman of LeEco’s auto unit and Faraday Future.

Jia is asking for more time to repay company debts. A Chinese court recently froze billions of dollars in assets that Jia had controlled.

Investment in Faraday has come through his own money. Jia said that LeEco doesn’t own any shares in the startup carmaker.

Faraday Future has been through upheaval since late 2016 when plant construction was put on hold to deal with delayed contractor payments. Two suppliers had taken the startup to court to pay its bills.

In February, the company announced plans to start production at a smaller plant on the North Las Vegas land. The company hoped to launch the FF 91 as soon as possible.  The second phase would begin years later that would build the three-million-square-foot plant that had originally been planned.

The startup said it will be keeping its rights to the site in North Las Vegas and will be building a vehicle production plant there later on.

That was confirmed by the Jia in a post on WeChat.

“We’re moving our FF 91 plant to a new location to ensure on-time delivery of our product,” Jia posted. “We’re now doing our utmost to adjust our existing factory and buying equipment, to get to mass production as soon as possible.”

The state of Nevada has been concerned about whether the company will meet its agreement invest a minimum of $1 billion in the plant to receive incentives.

Nevada Treasurer Dan Schwartz had questioned Jia’S strategy of borrowing more funds to set up financing several new businesses, including the Faraday plant.

“This is all Fantasyland,” Schwartz said at the beginning. “The best analogy is the Emperor’s New Clothes. There’s nothing there.”

SEE ALSO:  Faraday Future Takes 40th Place At 2017 Pikes Peak Hillclimb

Faraday’s plant may have yet to open, but it’s been staying active on the racing and performance front.

In late June, a Faraday racing team ran a customized FF 91 at the Pikes Peak International Hillclimb. The 1,050-hp car came in at 11:25.082 – 23 seconds ahead of a Tesla run the year before.

The FF 91 came in at 40th place in the race. First place by Romain Dumas in the Norma MXX RD Limited, who came in at 9:05.672.

Automotive News

 


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