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11 July 2017

Faraday Future Hits the Pause Button on $1 Billion Nevada Plant

Automaker shifts focus to an existing manufacturing facility

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Faraday Future has halted plans to build a $1 billion manufacturing facility in North Las Vegas, Nevada, according to a report from the Las Vegas Review-Journal. The EV maker is now seeking an existing plant that will allow it to begin producing vehicles more quickly.

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 to Motor 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

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