Faraday Future is an American startup technology company that focuses mainly on developing electronic vehicles. Founded in 2014 by Yueting Jia, Nick Sampson, and Tony Nie, with its tremendous growth potential, the company grew to over 1000 employees by the year 2016. However, after that, no one really knows what happened to Faraday Future the following years. Let’s find out what really happened.
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Faraday Future Has Been Through a Lot Since It Was Founded
Faraday Future Factory
A Chinese businessman named Jia Yueting founded a company that focuses on designing and manufacturing electronics vehicles. This startup company followed the wake of Tesla in the new modern technology-driven industry. The CEO was so full of confidence and ambitions that he even dared to challenge the successful Tesla, and you can be sure the founder of SpaceX is not too happy about it.
Faraday Future announced that by the end of 2015, they would invest up to 1 billion dollars into their first management facility. They decided that the location for its manufacturing site would be in North Las Vegas, and in charge of building the 500 million dollar site was AECOM. Construction began in April 2016, but soon after, everything went on hold due to the company’s current financial issues.
In one of their statements, Faraday Future said they have entered the bidding process and solicited five bids from both US and international contractors. However, it was announced right after they had been behind on payments to AECOM to the tune of $21 million. A spokesperson also stated that Nevada’s facility had been downsized from 3 million square feet to approximately 650.000 square feet.
At first, the company planned to launch its first fully electric vehicle in 2017 and possibly produce a broader range of vehicles after that. In addition, they have also planned to explore different aspects of the technology and automotive industries like in-vehicle content, usage models, and autonomous driving.
In July 2015, Motor Trend wrote an article stating that Faraday Future proposes that their electric vehicles will have more energy than the Tesla Model S, by 15%. Also, their model is going to have a modular design to improve the mass production process. And by the end of 2015 in the LA Auto Show, Richard Kim, former head of design of Faraday Future, talked about his interest in building a vehicle including build-in in-car entertainment, internet access, and aromatherapy technology.
And in January 2016, they finally revealed to the public their concept vehicle. The model was a sports car called FFZERO1; it had 1000 horsepower (750Kw), 200 miles per hour (320 km/h) with only 1 single seat. However, besides that information, they have never really put out any other details on potential car designs or production timeline.
This has seriously upset the public as they bombed posts on social media related to the reveal of FFZERO1. They were disappointed because the reveal is only a brief tease of a high-end concept race car that would never actually be produced.
In 2018, Faraday Future’s CEO was accused of trying to break an investment deal with an investor after spending $800 million in just 6 months. The company was sued by the investor and as a result. Faraday Future had just only $18 million left in the bank at the start of September of the same year.
According to the information shared by Faraday Future’s finance vice president, we know that the amount was just 2 million dollars more than the monthly cost. The cost includes payroll and supplier while they owed at least more than $59 million. So in October 2018, Faraday Future began a streak of salary reductions, rolling layoffs, and furloughs. To make the matter even worse, many top western executives quit, including the co-founder and former Tesla engineer Nick Sampson.
Not only that, the company tried to hide the problem from the public eye, but Jia, the CEO, also hid all the financial troubles from executives and staff until the last minute. With that kind of attitude and way of thinking, Jia has put a considerable strain on the company’s image and any potential solutions that might save the company. As new investors have lost their interest in Faraday Future and their trust in the CEO, they refuse to give any second chances as long as Jia is still in charge.
The Current State
Faraday Future, a company that burst out of nowhere in 2014, made wild claims that upset the whole electric vehicle market. Especially when people didn’t know who they were and arrogantly challenged the market’s most powerful competition. Now they don’t have a substantial achievement to back them up, and they have yet to produce any production vehicle.
That is the fundamental cause of pushing the company into a spiral of troubles and gaining market trust. The CEO declaring personal bankruptcy is just the cherry on top.
The prototype only gets collectors’ attention and is only usable for the sole purpose of test driving or display only.
Faraday Future has already been through a lot, and they ended up selling their headquarters to help keep the company running. Issues have mainly been caused by the too-bold statement, bad management, and the even worse approach. Will Faraday Future sustain itself and find a way to gain more funding and solve its financial problems.
What do you think about Faraday Future’s way of doing business? Let us know in the comment section below.
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