Energy

The Company Set Up To Compete With Tesla Just Lost A Billion Dollars

The electric vehicle company created to run Tesla Motors out of business is scuttling plans for a $1 billion factory in Nevada due to cash problems, according to an investigation by The Verge.

The Verge reported Monday the Silicon Valley startup Faraday Future (FF) is in dire financial straits with mounting debts, unpaid bills, lawsuits, and financial mismanagement. Five months ago, Faraday announced it was restarting construction of a production facility in North Las Vegas nearly one year after company initially halted construction amid financial woes.

It now appears that the factory will never be built.

“We have decided to put a hold on our factory at the Apex site in North Las Vegas,” Stefan Krause, FF’s chief financial officer, told The Independent. “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.”

FF troubles stem largely from a Chinese court freezing $182 million in assets of a major investor in the company. This left FF without the ability to finish the billion dollar Nevada factory. FF’s troubles are increasingly ensuring that the company can’t keep up with Tesla The Verge previously reported in December.

“If you’re an investor, you’re fucked,” one anonymous ex-executive told The Verge. “The company doesn’t own the IP.”

FF’s CEO assured reporters in January that the company’s first electric vehicle will be a luxury car built in the Nevada factory.

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