Scandal-ridden EV startup Faraday Future is on the brink of collapse it seems, with news coming in that their monetary issues are far worse than what was first reported.
Speaking to ChinaDaily, the Nevada state treasurer Dan Schwartz said that the state’s economic development agency would be “very embarrassed” if Faraday Future falls short of its targets. The state of Nevada agreed to a US$335mil tax break to the startup Chinese electric ‘carmaker,’ but importantly, the damage to the state will be “minimal” should FF fail completely, as they haven’t yet issued any bonds to the company.
Although the firm is currently aggressively attempting to raise its capital, Schwartz wasn’t holding back any punches. “It’s clear that Mr. Jia (Yueting, CEO of LeEco and FF) doesn’t have any money.” The manufacturer and its financial strength rests almost completely on the ability of Jia as its founder and CEO, and it’s not looking good thus far. After a lacklustre showing at this year’s Las Vegas Consumer Electronics Show (with a unfeasible and as yet immobile single-seater hypercar concept), sources from around the world are expecting to be sorely disappointed at the 2017 CES, where Faraday Future promised it would unveil a ready-to-buy production car.
An insider from FF spoke to The Financial Times, and said that its targeted 2017 delivery timeline was “not possible,” even if it managed to muster a working prototype in time for the CES. The insider went on to say, “If CES goes badly, it’s all over. It will be a long while before there is a production car.” Portal Jalopnik went even further, as an insider close to them sent a mysterious message saying, “Don’t expect to see as much as you’d like at CES.”
This is truly distressing news for ardent admirers of Faraday Future’s ambitious plans. As of today, construction at its US$1bil factory outside Las Vegas has been halted, they’ve defaulted on payments to construction company AECOM, and reports continue to emerge that CEO Jia Yueting and his mobility ideas under LeEco and Faraday Future are more hot air than anything else.
If you’ve been holding your breath for the “Tesla-killer,” we’d suggest you take a gasp now. Check out our previous report on the construction suspension on Faraday’s billion-dollar facility.