Faraday Future Halts Construction of $1 billion Factory in Nevada
【Summary】Faraday Future said today that it’s officially halting efforts to build a $1 billion production factory in Nevada. This comes just one week after its strongest backer Yueting Jia was facing LeEco’s financial crisis.
Faraday Future said today that it's officially halting efforts to build a $1 billion production factory in Nevada. This comes just one week after its strongest backer Yueting Jia was facing LeEco's financial crisis.
According to Jalopnik, days ago Faraday Future officials said that Jia's financial trouble will have "no impact" on Faraday's daily operations and the mass production of FF91. The flagship model from Faraday Future premiered in January at this year's CES in Las Vegas.
In a statement to the Nevada Independent, Faraday's chief financial officer Stefan Krause said FF is now planning to shift its business strategy, with the goal of raising $1 billion for its long-term development.
"We have decided to put a hold on our factory at the Apex site in North Las Vegas. We remain committed to the Apex site in Las Vegas for long-term vehicle manufacturing," Krause said in the statement.
The state of Nevada has welcomed Faraday Future to build its factory there with a $335 million tax incentive package. It expects the automaker to create some 13,000 jobs across southern Nevada. State regulators reportedly said on Monday that no public money will be lost on FF, as the majority of the factory projects have yet to commence.
The company then told Jalopnik that its business strategy will now focus on positioning "the company as the leader in user-ship personal mobility-a vehicle usage model that reimagines the way users access mobility."
"As a result of this shift in direction, we are in the final stages of confirming a new manufacturing facility that presents a faster path to start-of-production and aligns with future strategic options" the statement said.
Many have speculated that the remark suggests that the company is shifting to ride-sharing service. But the secretive company did not give more details on its current status. Media reports suggest that Faraday is looking to close a deal on one of a few potential sites, likely in California and Nevada, hoping to launch production in the near future and sell its flagship product FF91 by the end of 2018.
Last week, YT Jia backed out from LeEco's chairman position and said he will be fully committed to "revolutionize the automotive industry", and focus on "realizing the mass-production of FF91". Clearly Jia and FF are still tightly connected. Whether the young automaker can survive its current troubles and disrupt the whole industry is anyone's guess.
Claire Peng has over 6 years of professional experience in the media industry, covering TV, newspaper and online media. She was once a reporter and producer for Fairchild Television based in Toronto Canada, and worked as an English news reporter for the Global Times in Beijing. She writes mainly about self-driving, companies investment, and the enterprise lab.
NYU Releases the Largest LiDAR Dataset to Help Urban Development
July 13th, 2017 News of the Day: Uber merges with Yandex, U.S. to simplify driverless car rules
Hyperloop One Completes Its First Successful Test Run
July 12th, 2017 News of the Day: Faraday to move its factory, Vizio files lawsuit against LeEco
July 11th, 2017 News of the Day: Tesla to triple its service, Porsche posts half-year sales record
July 10th, 2017 News of the Day: China to become Cadillac’s largest market, Oregon adds EV rebate
July 7th, 2017 News of the Day: VW partners with Kuka, Tesla to build battery factory in Australia
July 6th, 2017 News of the Day: Toyota opens HQ in Texas, France could end fossil fuel cars by 2040
- Toyota Begins Autonomous Driving Tests on Public Roads in Europe
- Florida Governor Signs Bill Allowing Self-driving Vehicles to Operate Without a Safety Driver
- Ride-Hailing Giant Uber Posts $5 Billion Loss as Growth Slows
- Japan’s Softbank Launching a Satellite Navigation Service for Autonomous Vehicles
- GM Says its Vehicle Lineup Will Be Capable of Receiving OTA Updates Beginning in 2023
- Tesla Received a ‘Cease and Desist’ Letter From U.S. Regulators Last Year Over Model 3 Safety Claims
- Tesla Continues to Outsell Competitors, Sees Strong Demand for Model 3
- Tesla Shares, Bonds Under Pressure as Elon Musk Warns of Shrinking Profits in Q3
- Comparison: Rivian R1T Electric Pickup Truck VS. Ford F150
- Cars Are Being Reinvented to Keep Up With Autonomous Tech