Faraday Future Halts $1 Billion Las Vegas EV Factory Plan

Posted: Jul 11 2017, 4:19am CDT | by , in News | Cars & Vehicles

 
Faraday Future Halts $1 Billion Las Vegas EV Factory Plan
  • Faraday Future Halts Program for North Las Vegas Factory

Faraday Future has ditched any program for starting its North Las Vegas factory in earnest. This news is tantamount to a disaster for the company.

It hardly makes for a decent piece of news. Faraday Future is an automaker that has gone down into the dumps recently with its declaration that it was stopping all plans of starting an assembly unit in North Las Vegas.

Instead of this, it is buying a used building to start its production unit. This will of course save up on time and money for the construction from scratch of the previously planned new unit.

At least two dozen employees were notified regarding their jobs being redundant. Whether they will be given the pink slip or reassigned remains to be seen. This is a spot on the face of the automobile maker’s reputation.

The financial issues that the Chinese investor Jia Yueting is currently facing spells disaster for Faraday Future. 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.

LeEco, which is the Chinese company working in the background of Faraday Future, has put land on sale in Silicon Valley to pay off some unresolved debts.

Faraday Future’s chief financial officer, Stefan Krause, said in a statement, “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,” said , who’s been for the past four months. 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. 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.”

While Faraday Future plans on keeping the limited amount of land it owns in North Las Vegas, it is unclear what purpose this land will be put to in the future. It is in fact anybody’s lucky guess. However, every grey cloud has a silver lining.

In this case, once the facility is built, no matter how limited in its expansiveness, the production of cars will begin in earnest. The original EV factory that was worth one billion dollars has been forsaken by Faraday Future for better or for worse.

Yet some reports have reached the media that Faraday Future is not abandoning its factory. Rather it seems to have freezed it for the time being.

However, when you read the small print, it seems that for all purposes, Faraday Future’s dream team factory is defunct for now at least. Sometime in the times to come, they might build some stuff on this land.

For now it lies fallow. The question on everyone’s lips is whether Faraday Future’s electric vehicle FF91 will reach the production deadline as per plan. This is a moot point at present.

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