Faraday Future, a startup firm from California aimed to unsettle Tesla and dominate the electric car segment. But the company has hit a major setback due to financial issues.
The Verge reports that Faraday Future has dropped the plan to build a manufacturing facility worth 1 billion in Nevada. The reason is, its Chinese investor is facing a cash trouble.
The electric car company halted the construction of the factory almost a year ago but later claimed that it had restarted the project. Now, by looking at the financial condition, it looks like the plant will never be built.
Jia Yueting, the founder of LeEco and a major investor of Faraday Future, faced a setback when a Chinese court froze its assets. But the electric car maker had stated that it would not affect the production of its first car, the FF91.
But the situation is a lot worse; sources claim that its operations at Los-Angeles headquarters will also be scaled down. Apart from that, the company may not be able to pay its employees. Currently, the company is facing several setbacks, and it will be a great challenge to overcome these issues.
But Faraday Future had a good time at this year's Pike Peak Hill Climb race. The FF91 set a record time climbing the hill. But as per sources, this kind of projects, along with two other car projects are distracting the automaker from achieving its primary goal of launching the FF91.
Right from the beginning, Faraday Future was in trouble. During the unveiling of the FF91, the firm was embarrassed due to its car malfunctioning at the launch event. From then on the company is facing financial issues. And now it looks like the situation has gone from bad to worst.