Faraday Future puts proposed $1 billion Nevada factory on ice

Adjust Comment Print

"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".

Amidst financial troubles, which have been evident for the past few months, FF is putting their plans for a custom-built facility in North Las Vegas on hold and seeking an already constructed 1 million square foot facility somewhere in Nevada or California. Five months ago, Faraday announced it was restarting construction of a production facility in North Las Vegas almost one year after company initially halted construction amid financial woes.

While Faraday Future plans on keeping the limited amount of land it owns in North Las Vegas, it is unclear what objective this land will be put to in the future.

The financial issues that the Chinese investor Jia Yueting is now facing spells disaster for Faraday Future. Jia said that LeEco doesn't own any shares in the startup carmaker. The company said that Jia's financial problems were not related to the decision. Two suppliers had taken the startup to court to pay its bills. But construction of the plant had yet to begin when the company made its Monday announcement. The plans for the North Las Vegas factory were changed from the factory being three million square feet in area to being just 650,000 square feet instead which is a shame. The brand will retain the rights to its Nevada site and still plans to build a vehicle there in the future, but for now, its completion isn't high on Faraday Future's list of priorities.

"We're moving our FF 91 plant to a new location to ensure on-time delivery of our product", Jia posted.

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 State Treasurer Dan Schwartz said in November 2016 that he believed electric vehicle start-up Faraday Future was a Ponzi scheme. "No company has had such an experience, a simultaneous time in ice and fire", he said. "The best analogy is the emperor's new clothes".

In late June, a Faraday racing team ran a customized FF 91 at the Pikes Peak International Hillclimb. First place by Romain Dumas in the Norma MXX RD Limited, who came in at 9:05.672.