Faraday Future, the supercar manufacturer from China created much furore when they showcased the all-electric 1000 HP FFZero1. The Chinese manufacturer is backed by electronic giant LeEco and was about to start the construction of the Faraday Future's Nevada EV manufacturing plant, only to halt the construction idea for an indefinite period.
According to a report in the Financial Times, the halt in the project has put the projected electric car delivery dates at risk. As told to FT by Dan Schwartz, Nevada State Treasurer, the company is overdue with millions of dollars of bills to its general contractor Aecom. Schwartz threw a warning in July about Faraday's financing.
"You can see where this leads," Schwartz told Bloomberg in July. "His Internet company is successful, but that doesn't generate the billions of dollars he'd need. Where's he going to get the money?" Schwatz predicted this when the stocks of the electronics company of Yueting fell by 30 percent starting 3rd June. Yeuting was funding the EV ventures using loan from his electronic firm, although he is China's 30th richest person with an estimated worth of $6.3 billion.
On the other hand, Aecom hasn't confirmed the reports and stated that they are committed to the project and Faraday hasn't missed out on any payment. "Faraday Future is temporarily adjusting their construction schedule with plans to resume in early 2017," Aecom said. According to Aecom, the construction is set to resume early next year, but given the stage of production, it's unlikely that the factory will produce any vehicle by 2017.
Talking about the Faraday's vehicles, first up is the insane 1000 HP producing FFZero1 electric supercar that has already been showcased in the concept form. But the most important model is the competition to Tesla model (not clear whether Model 3, Model X or Model S) will be unveiled at the CES 2017 in just over a month from now and you can watch the teaser for the unnamed vehicle above.
As for the Faraday's parent company, LeEco has its own line of EVs planned. The founder of LeEco, billionaire Jia Yueting has an ambitious plan of EVs starting with the LeSee EV that will be built in China itself, and will be manufactured in the company's Nevada plant only along with a plant in China. Yueting is spending $1 billion on the Nevada plant and $1.8 billion on the China's plant.
Yueting is also behind yet another Tesla-like EV in the US, the Lucid Motors' Atieva according to some reports. On top of all these investments, LeEco has also bought US TV maker Vizio for $2 billion. However, former Lucid Motors employee Martin Eberhard was not happy with LeEco's multiple-EV strategy, saying it's "being run like an old-school Hong Kong company."
While LeEco got a new round of funding with $600 million being invested recently, Yueting admitted that the company is overextended and announced a plan to cut costs. Still, Faraday is attracting top EV talent from the across the globe working with firms like Tesla, BMW and other car companies. It recently showcased "world's highest energy density" battery it co-developed with LG Chem.
A lot is riding on the shoulders of the success of the Faraday's production car prototype at CES 2017 and a former employee told the Financial Times - "It will be a long while before there is a production car. If CES goes badly, it's all over."
We hope Faraday rises from this bad phase and make a name for itself, for we need more and more EV manufacturers to boost the confidence of buyers across the world.