Faraday Future Hits the Pause Button on $1 Billion Nevada Plant
Automaker shifts focus to an existing manufacturing facility
Faraday Future has halted plans to build a $1 billion manufacturing facility in North Las Vegas, Nevada, according to a report from theLas Vegas Review-Journal. The EV maker is now seeking an existing plant that will allow it to begin producing vehicles more quickly.
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The planned factory, announced in late 2015, was once expected to cover 3 million square-feet. Later, Faraday Future reportedly scaled back the size of the facility in Apex Industrial Park to 650,000 square-feet. Now, Faraday Future's short-term plans no longer include building the expensive facility, which broke ground in April 2016.
"We at Faraday Future are significantly shifting our business strategy to position the company as the leader in user-ship personal mobility--a vehicle usage model that reimagines the way users access mobility," Faraday Future said in a statement toMotor Trend. "As a result of this shift in direction, 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 says the decision will allow it to achieve its manufacturing goals within its previously stated timeline of 2018. The automaker will retain the 930 acres of land where the plant was to be built, with the hopes that it will be used one day. "We remain committed to the buildout of the Apex site for long-term vehicle manufacturing and firmly believe North Las Vegas is an ideal place for us to be," the statement said.
Faraday Future's financial troubles are no secret. The EV startup reportedly missed several deadlines for paying workers on the North Las Vegas site. Last week, a Chinese court froze $182 million in assets tied to Chinese billionaire Jia Yueting, the primary backer of Faraday Future. In addition to halting plans for the Nevada factory, Faraday Future has pulled the cord on plans for an additional factory on Mare Island in Vallejo, California.
Fundraising efforts will continue despite the change of plans, Faraday Future has confirmed. Currently, the automaker is trying to raise $1 billion to build its FF 91 electric vehicle, which is said to hit 60 mph from a standstill in just 2.39 seconds.
Source: Las Vegas Review-Journal
When I tell people I write about cars, the most common reply I receive is “Really?” I guess I never strike people as a car type as I drive down the freeway in the right lane going 60 mph in my old SUV. My gripes about driving in city traffic and fast drivers don’t help my case, either. For a time, the only cars I liked were old cars. Not old as in "classic" or "vintage," but as in well-worn. My first appreciation of cars came when I drove a very old Ford pickup. It wasn't perfect: I used a booster seat to reach the gas pedal, and the turn signal once fell off in my hand as I was learning to drive. But the thing I valued most was the memories. It took several years for me to truly become a "car person." Being a long-time writer and an avid reader has helped me develop a healthy curiosity and a desire to know how things work. This has made cars one of the most fascinating points of study for me because they are such intricate machines. I am interested in how cars can reach 200 mph, how they can run on hydrogen, and how they can drive and park on their own. I also enjoy learning how cars can solve problems whether it be in the form of reducing pollution, minimizing traffic, or helping people stay connected on the road. Yes, maybe I’m not a gearhead. Perhaps I’m a car nerd. Either way, I very much enjoy writing about cars and helping people stay in tune with the automotive industry. I wouldn't want to be writing about anything else. And don’t get me wrong: I know how to drool over a hot car. I am fascinated by the Tesla Model S, awed by the Lamborghini Veneno, and am hopelessly obsessed with the Audi R8.
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