Once touted to be the ‘Tesla-killer’, Faraday Future’s own future looks dreary as the company is reportedly running into a host of issues ranging from financial troubles as well as a lack of leadership at the helm.
Faraday’s FF91 car showed up at CES 2017 and put up a better show than their CES 2016 unveiling, but at a price of shutting down their operations at their Nevada-based factory two months prior to the event.
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According to a report published in the BBC, the company shut down operations in the factory in October in order to be able to support the glitzy CES presentation in January 2017.
There have been issues with unpaid bills worth hundreds of millions of dollars by suppliers in the past, two of whom also sued the company — though one of the lawsuits was cleared off.
LeEco’s Founder and CEO Jia Yueting is the only publically declared investor in the company.
Talking to Dave Lee of BBC, Faraday Future’s Senior VP, Nick Sampson said, “Clearly something like CES requires funding and some resources. We are resource-limited at times. It’s just a matter of keeping the cash flow balance between the different projects we’re trying to do.”
Finances aren’t the only part that the company is taking a hit, though. According to a report published in Business Insider, a number of senior company officials left due to the financial stumble that the company has been facing and an uncertain future of its production capabilities.
“The challenge of building a new company is that it’s not just doing the engineering and R&D work, we’ve manufacturing to keep aligned, we’ve also got the whole sales and marketing, branding and imaging,” Sampson added.
Getting into the heavily competitive motor industry is certainly a herculean task, which is why very few even attempt to go that way.
Faraday Future’s claims of the FF91 being the fastest car which zooms from 0-60 mph in less than 2.4 seconds and also can park by itself is a little too much to digest when the company is running into troubles to keep its production unit running.
It’s no secret that Faraday Future is hell bent on competing with Tesla motors, who have an array of working vehicles to show off, and it isn’t a well-strategised entry plan into the market when the company is failing secure funds and pay their pending bills.
According to the same Business Insider report, a source close to the company mentioned that the CES 2017 launch was important to the company to secure investments and if the company fails to do so in the next two months, then their chances of closing operations are quite high.
The source also claimed that given the current predicament that Faraday Future faces, it will have to downsize its 1000-strong employee strength in the US to about half its size or more.
There was a lot of buzz surrounding the FF 91 which is slated to be delivered in 2018, and if the company can churn out some investments, deliver on their promise of specs as well as production, Tesla would surely have something to worry about — but as of now, Faraday Future’s chances look bleak.