Faraday Future Hits the Pause Button on $1 Billion Nevada Plant

Share
Faraday Future Hits the Pause Button on $1 Billion Nevada Plant

Faraday Future says it owns the land it planned to build on and is committed to the site for "long-term" vehicle manufacturing.

According to CNN.com, the main investor for FF, Jia Yueting, has had his assets frozen due to loans from various financial institutions.

There's no word yet on which companies Faraday might be courting, or where in the world they might be located. The company stopped construction on the proposed project a year ago, after falling behind in payment to AECOM, the global construction company hired to do site work for the factory.

While Faraday Future plans on keeping the limited amount of land it owns in North Las Vegas, it is unclear what objective this land will be put to in the future.

The Chinese-funded, Gardena-based electric-car startup said Monday that it is scaling back its already scaled-back plans.

Faraday Future's cutbacks come, in part, from the financial struggles of key investor Jia Yueting, the billionaire behind Chinese internet conglomerate LeEco. Faraday Future is an automaker that has gone down into the dumps recently with its declaration that it was stopping all plans of starting an assembly unit in North Las Vegas. Established auto companies are releasing more electric options and it's unclear whether President Donald Trump's administration will continue tax breaks that incentivize the industry and motivate buyers. "I think the next 12 months are going to be very telling".

The company is attempting an exceptionally expensive feat - one that Tesla has not pulled off, Autotrader executive analyst Michelle Krebs said. "You've got an industry that is capital intensive and you've got an electric vehicle market that is kind of shaky, so those two things probably are at play".

There are a lot of companies out there nowadays that seem to be essentially nothing but PR gimmicks - Faraday Future is certainly not alone in that respect - but the company did seem to take that sort of approach to business even further than most.

"We have made a decision to put a hold on our factory at the Apex site in North Las Vegas", Stefan Krause, FF's chief financial officer, told The Independent.

"The history of this industry is littered with grand startups that never came true", Brauer said.

Share

Advertisement

Related Posts

The toll from flooding in Japan is continuing to rise
The deadly disaster prompted Prime Minister Shinzo Abe to decide to cut short his European tour and return to Japan. They suspect the victims were carried downstream by the Chikugo River, which flows through the disaster area.

Whole Foods Had A Chicken / Tuna Mix-Up & Jessica Simpson Was Fkn Ready
"The Newlyweds ", a reality show about Jessica Simpson and Nick Lachey being um, newlyweds is back in the news. They share three kids: Camden John, 4, Brooklyn Elisabeth, 2, and Phoenix Robert, 1.

Arab League lauds UNESCO recognization of Hebron as Palestinian heritage site
Two other shrines next to it - the Jewish Tomb of the Patriarchs and the Muslim Ibrahimi Mosque - have been accorded the same tag. Israel blames the violence on incitement by Palestinian religious and political leaders, compounded by social media.

Stock Markets Helped by Healthy US Economy
Investors also awaited earnings due this week from big United States banks including JPMorgan Chase, Wells Fargo and Citigroup. Bets that USA borrowing costs will rise further continue to underpin the dollar, which held gains against the pound and euro.

Fumes at FAA facility cause delays at DC-area airports
Rinehart said 51 people were evaluated after the evacuation and one woman was sent to Inova Hospital in Lansdowne as a precaution. Controllers resumed operations at about 9:30 p.m., but hundreds of flights were delayed or disrupted in the intervening time.

Apollo Scores Golf Club Operator In $1.1B Take-Private Deal
The stock of ClubCorp Holdings Inc (NYSE: MYCC ) has "Buy" rating given on Wednesday, June 21 by Jefferies. In 2015 the stock traded above $20.00. (NYSE: MYCC ) are scrambling higher in today's trading session.

Smartphone offers on Amazon India Prime day
For buyers looking for wearable technology, Amazon is offering minimum 40 per cent discount on Fitbit fitness trackers. Go to the app's settings menu, click notifications and toggle alerts on for "Your Watched and Waitlisted Deals".

Eminem and Dr Dre may be working on a new album
And his observation that Dre still records every day matches similar statements from Bishop Lamont, Stat Quo and others. Hughes sat with Uproxx to talk about his documentary, which premiered on HBO Sunday night.

GST Rates Finder app by NIC India now available to download
The application has been produced by the Central Board of Excise and Custom ( CBEC ). It can be downloaded on any smartphone phone and works in offline mode as well.

California's Revenge Porn Law Gets a Kardashian-Sized Spotlight
Blac Chyna has officially spoken out about Rob Kardashian's social media tirade in a new interview. One of Rob's many posts last week threatened to make sure Blac Chyna lost custody of her daughter.

© 2015 ExpressNewsline. All Rights reserved.