The Chinese billionaire behind Faraday Future just got a grim reality check

[rhumbliner]

I'm guessing they've figured out starting a car company is tougher than it looks:

http://jalopnik.com/the-chinese-billionaire-behind-faraday-future-just-got-1788657774

 

[BluestarE3]

Yeah, I was wondering when it would come to this. He was spending money like there's no tomorrow and I thought maybe the government was bankrolling him, but apparently not.

Now I wonder if all the talent that went over to FF/LeEco will be looking to be rehired at their old firms?
Guess there might be a big empty lot in Nevada for Tesla to grow into.

 

[cgiGuy]

There might be a auto manufacturing plant in Nevada for sale soon. Might be a good place to make Teslas.

"So I’m not sure if this reality check from Jia is particularly heartening for Jia’s car business LeEco or its technical partner Faraday Future, which has gotten $335 million in tax breaks from the state of Nevada to fund a billion-dollar factory in the state. It still needs state support for a few minor additions, such as power lines, water lines and roads. It was also recently in the news for being a solid $21 million late on payments to its construction company."

 

[Yggdrasill]

There might be a auto manufacturing plant in Nevada for sale soon. Might be a good place to make Teslas.

Unfortunately I don't think they've started building it yet.

 

[BluestarE3]

Unfortunately I don't think they've started building it yet.

Well, at least the land is graded if I'm not mistaken. A tabula rasa for Tesla.

 

[vinnie97]

Now they represent a future that is even further away. Who didn't call it?

 

[xmetal]

I always had a sketchy feeling about FF, like they were being purposefully vague in an attempt to trick people. Sure, it's obviously a real company and all that, but the way they have gone about everything feels like all the other vaporware projects you see. We'll see what happens, but a Tesla "killer" they are not.

 

[AudubonB]

I don't think it was a grim reality check.

I think it was a grim reality bill.

On topic, as I related in the main FF thread, we drove by the factory site three weeks ago, and can confirm that Bluestar appears to be correct: tabula rasa indeed.

 

[ZeApelido]

They just posted a bunch of job listings a day ago: http://www.indeed.com/jobs?q=faraday+future&l=ca

 

[RubberToe]

Insideevs is reporting that work at the FF site in Nevada has stopped.

RIP FF.

RT

 

[BluestarE3]

Insideevs is reporting that work at the FF site in Nevada has stopped.

RIP FF.

RT

Supposedly, work on the factory site has been suspended until early next year. Maybe they're trying to arrange more funding in the meantime? We shall see, but it certainly doesn't look good.

 

[green1]

FF seemed to be lacking direction. Making a new car company is hard, but it's not impossible as long as you have lots of money, and a vision that you stick to. FF always seemed like a bunch of engineers and designers given a whole lot of money and no oversight, sure they'll come up with some neat stuff, but without someone to guide them they'll never get anywhere towards an actual finished project.
It's sad, because I really wanted FF to succeed, but as soon as I saw that train-wreck of an unveiling I knew they would never make it.

 

[BluestarE3]

Looks like they're getting a $600 million cash infusion from more than 10 Chinese companies to keep them going for a while longer:
Faraday Future delays EV factory construction while investors secured $600 million in financing

Throwing more good money after bad? Backing from central government behind the scenes?

 

[tftf]

It's sad, because I really wanted FF to succeed, but as soon as I saw that train-wreck of an unveiling I knew they would never make it.

That 2016 concept had nothing to do with the actual production car. The "real" car will be unveiled by Jan 2017:

Faraday Future to unveil its first production car at CES 2017 in January

Looks like a cross-over to me. Not a bad segment if they hit a sweet price spot.

That's assuming they didn't have to postpone the CES 2017 "launch" (more like unveiling) due to the liquidity crunch.

What I don't understand is why they work on two brands/efforts, likely duplicating many things (LeEco and FF).

The $600 million round mentioned by other posters will keep them going for a few more months at least.

PS: Don't forget they shelled out $2 billion a few monts ago for CE company Vizio not long ago. They have many assets to dump before they would have to turn off the lights:

Vizio acquired by Chinese tech company LeEco for $2 billion

 

[green1]

I am aware that that was not supposed to be an actual production car, but it WAS proof that they don't have a clue what they're doing. It showed that they have no focus, and no idea what the public wanted from them, listening to the presentation itself was also just painful.
Sure they may have lots of cash that they can burn through, but that's not what makes success. Success comes from having the appropriate vision and direction.

I'd love to be proven wrong here, but I'll be shocked if they ever amount to anything.

 

[BluestarE3]

It seems they are going about this backwards. Instead of starting out with a great idea for a product and then building a company, facilities and hiring people to design, engineer, manufacture, and market the product, they instead spent big bucks hiring some top talent, threw them into a room and hoped some great ideas for a product will come out of this this. Innovation by committee? Ergo, the seeming lack of focus mentioned by others.

 

[BluestarE3]

More reports that the company doesn't seem to have any focus, in addition to their financial woes:
Inside the turmoil at the secretive startup that wants to beat Tesla

 

[EV-lutioin]

Faraway Future )

 

[BluestarE3]

Faraway Future )

Recently, more like Lostourway Future.

 

[YBT]

I am aware that that was not supposed to be an actual production car, but it WAS proof that they don't have a clue what they're doing. It showed that they have no focus, and no idea what the public wanted from them, listening to the presentation itself was also just painful.
Sure they may have lots of cash that they can burn through, but that's not what makes success. Success comes from having the appropriate vision and direction.

I'd love to be proven wrong here, but I'll be shocked if they ever amount to anything.

Lucid & FF are two separate companies sharing a similar investor. The investor in question seems to be more heavily involved in FF (far weaker of the two efforts IMO). For reference he is one of four main (and the only Chinese) investors in Lucid / the motor artist formerly known as Atieva

My prediction is FF will bomb before another 18 months but Lucid will float (and partner up with Tesla for SC access and other goodies too).