Faraday Future is a Chinese auto startup company that fizzled before they began. The firm was said to have absurd plans, dysfunctional organization, and missing funds – and this is simply what its employees, suppliers, and contractors are saying. Directors and staff are leaving and everything is going to pot! Only one year ago Faraday Future was a buzzword among the tech industry, so what happened?
State tax incentives and abatements received from Nevada totaled more than $335 million towards the plant, and it was to be the official sponsor of the Formula E team. They had also been dubbed “The Netflix of China”, so what could possibly have gone so wrong? One problem is that the company made a few promises that proved difficult to keep. They said that production of these electric cars would begin by 2017 in their $1 billion facility in Nevada, but this is unlikely to happen.
Problems started to become apparent around January this year when Faraday Future were in the news for delays with payments, senior staff departing, and various lawsuits. When questioned, the company decline to comment as to if they will be releasing the car they’ve promised. The lawsuit with the supplier is one thing that may just hold them back a little as they are looking to sue Faraday Future for $10 million. Futuris are the company that develop and supply the seats for Faraday’s car. Money for orders had been withheld by Faraday Future and after several unsuccessful attempts at recovering the money themselves, Futuris decided to file a lawsuit.
More suspicious activity came in the form of the $250 million of land that LeEco bought from Yahoo in June. Although LeEco is a separate company to Faraday Future, it’s owned by the latter’s principal backer – Jia Yueting. And when they needed a guarantor for that massive land deal it was Faraday that secured it, even though the company was in no position to back anything. But, with a few adjustments made by a top law executive, the deal went through.
The future of Faraday Future remains to be seen, but looks bleak at best. With no suppliers, the factory and business is at a standstill. Quite how this will be turned around is the million dollar question, and one that may never be answered.
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