Tesla’s arch-nemesis Faraday Future took the wraps off its first production car FF-91 at CES this year. And everyone in the tech industry was blown away with the vehicle shown off by the company. But, fresh reports have now uncovered that the cash crunch still continues and it is affecting the company’s next plan of action i.e setting up a $1 billion mega factory.
The company has decided to scale back on its plans to set up a mega factory in Nevada and is now building a smaller factory that what was originally planned. Faraday Future has down-sized its construction plans and will now build the facility on a quarter of the area i.e 650,000 square-foot (60,390-square-meter). The construction procedure is expected to begin later this year.
The original floor plan for the said facilities would’ve covered up to 3 million square feet in North Las Vegas, Nevada. The said development have been confirmed by a city official, late on Tuesday. Other sources aware of the company’s plan have also reported that Faraday Future has also slashed the planned production portfolio for its first production vehicle. It will now release only two variants, in stark contrast to the seven it had boasted about.
In a statement released by the company, the spokesperson says,
We remain committed to the State of Nevada and are continuing our $1 billion investment in the region over the next few years.
The company first announced its plans for setting up a $1+ billion auto factory outside of Nevada back in December 2015. It had then stated that the facilities will have an annual capacity of 150,000 vehicles. It was also planned to become operational in late 2017 but it doesn’t look to be working out according to this schedule.Now, Faraday Future is eyeing an annual production of 10,000 cars a year and may not open until 2019.
There’s no ignoring the fact that Faraday Future has been plagued with bad luck and cash flow problems since their inception. The company has recently also been feeling the heat of executive departures, as at least a dozen of them have moved out in the last nine months.