Facing liquidity problems, Faraday Future scales back its EV lineup

Faraday Future

Faraday Future is scaling back its ambitions, according to Reuters, cutting its planned product portfolio from seven EVs to two, and also reducing the size of its factory in Nevada to 650,000 square feet, less than a third of its original planned footprint.

When the company announced plans for its assembly facility in 2015, it committed to an investment of over $1 billion – a commitment which the company said it still intends to honor. The new plan is for a capacity of 10,000 cars per year, instead of the 150,000 originally planned. The facility is to open in 2019.

Faraday’s factory project has suffered from work stoppages and lawsuits due to non-payment of contractors. The company’s founder, Chinese tech entrepreneur Jia Yueting, admitted last fall that his global operations were overextended. Several US executives have left the company over the last few months.

Recent reports also offered a hint at what Faraday is planning beyond its FF 91, the luxury vehicle it unveiled at the recent CES. Reuters says the other vehicle that survived the cuts is the FF 81, a more affordable crossover vehicle, intended to compete directly with Tesla’s Model X.

Unnamed sources told Reuters that future production of Faraday vehicles, and companion models for Chinese sister brand LeSee, will likely be centered in China’s Zhejiang province, which has agreed to subsidize construction of a new plant with a 450,000-vehicle capacity that could open in 2019.

 

 

Source: Reuters via TechCrunch