Exclusive Jalopnik Report Claims Faraday Future Is Dysfunctional, Out Of Money & On Verge Of Falling Apart

3 months ago by Steven Loveday 20

Faraday Future FFZERO1 Concept - Prior to being set to flames by Jalopnik

Faraday Future FFZERO1 Concept – Prior to being set to flames by Jalopnik

Leave it to Jalopnik to further expose the claims that Faraday Future is failing (much more miserably than previously reported), complete with the photo-shopped image of a Faraday concept car in flames (see that shot below in a tweet-back response from Faraday on what they think of the story)

The article goes into extensive detail about exactly where the issues lie and where the company stands.

Several contractors, suppliers, current employees, previous employees, prospective employees, and others have opened up to Jalopnik (with the publication’s promise of anonymity) to divulge the current situation as it stands. Below are some notable takeaways:

Faraday Future Teaser ... hmm

Faraday Future Teaser: Hmm … what is it?

  • Lagging payments to the construction company responsible for the Faraday “Future” factory
  • Senior staffers leaving the company
  • Plans way behind schedule
  • Supplier lawsuits over lack of payment
  • Landlord lawsuits over lack of payment
  • Work stoppage at the factory – see letter from AECOM on ~$57 million of arrears here via BuzzFeed
  • $300 million in liabilities that are not even on paper
  • $600 million in “secured” investments coming in (however nothing appears to have yet materialized)
  • State officials in Nevada finding flaws in the CEO’s net worth, and the company’s financial situation

One notable story involves Faraday’s seat supplier, Futuris. Faraday owes the company $10 million ($7 million is over 30 days late). The case was mysteriously dismissed last week (with neither company commenting), but this is only one of multiple suppliers that Faraday owes millions of dollars. Sources say that many companies on the list have ceased to provide any more business to Faraday.

Update/Editor’s Note (hat tip to sven):  Faraday Future for its part has responded back to Jalopnik’s article; unfortunately it did so with platitudes over stating that it was now paying its bills.

Faraday Future employees reportedly designed and built LeEco’s electric car, and Faraday incurred the R&D expenses, however, Faraday was never compensated and employees were never paid for it. The LeEco and Faraday situation is very confusing. They have the same parent company, but aren’t the same company, and are strategically “together”, yet not “together” etc. Just more mess in the whole situation.

The land that LeEco acquired in Santa Clara, for the project, was purchased with loan money that was only approved due to Faraday being a guarantor on the loan. This was a huge added financial liability for Faraday, that several top execs at the company argued against. Regardless, it was approved.

No working factory … no work being done on the factory itself … suppliers owed money and refusing to continue the partnership … the state of Nevada finding discrepancies … a myriad of teasers that don’t amount to much (including the upside black bowl above) … a “leader” refusing to answer questions and suddenly claiming he’s only an investor … no actual CEO … ahh the list goes on and on and on …

Do check out Jalopnik’s full report and decide for yourself on Faraday Future’s…future.

Source: Jalopnik

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20 responses to "Exclusive Jalopnik Report Claims Faraday Future Is Dysfunctional, Out Of Money & On Verge Of Falling Apart"

  1. Anon says:

    Ah, the smell of Dead FFish… 😉

  2. bro1999 says:

    They won’t even make it to the CES reveal. Faraday F****d

    1. reguest says:

      They now have made it to CES. Possibly not much longer than that…

  3. speculawyer says:

    I have no idea if this is true or not. But it certainly would be typical for an EV start up.

    1. SJC says:

      It sounds like they are using FF as a dumping ground, go broke then walk away.

  4. ffbj says:

    Tonight on the menu “crow a la range”, is being served, to all those that adamantly maintained FF was a viable company.
    I was not one of them.

    The movie will be a documentary called: “Bobcats in the Desert.”

  5. Chris O says:

    So it all boils down to one problem: the extremely deep pockets just aren’t there. That’s too bad because those are among the most important prerequisites of starting up a car company.

    Apple and Google appear to have bowed out of actually producing cars and maybe with good reason but they were actually excellent candidates for long term success in the car game having the financial wherewithal to make it through the valley of death.

    1. Pushmi-Pullyu says:

      Chris O said:

      “So it all boils down to one problem: the extremely deep pockets just aren’t there.”

      Oh no, there were a great number of big problems evident in FF’s claims and announced plans from the start; problems that at least a few of us noticed even in the first FF press release reported on InsideEVs.

      We should expect high-tech startups to make optimistic claims, as part of promoting the company and trying to attract investor money.

      But we should not expect to see or hear plans announced which are obviously impossible to realize, or claims and plans which make whoever is in charge look absolutely clueless about the realities of building and selling mass produced cars.

      I hope that at least some of those who repeatedly disputed the assertions of those of us who were sounding the alarm about FF, will take this as a learning experience, and exercise more skepticism in the future about claims from a startup which are so obviously extremely unlikely or even impossible.

      1. Chris O says:

        I was referring to the list of problems mentioned in this article which all boil down to lack of funds.

  6. Terawatt says:

    The future is failing. And this is supposed to be news?

  7. Koenigsegg says:

    Farewell Future

  8. WheelChairs4YourEarz says:

    What a joke. The future ain’t what it used to be…

  9. Surya says:

    They wanted to be too big too soon, it seems they overextended themselves.
    Here’s hoping, but I don’t have a lot of it…

  10. ¯\_(ツ)_/¯ sven says:

    Faraday Future has responded with Tweets:

    Skepticism and negativity only strengthens our conviction to redefine sustainable mobility. Decide for yourself on Jan 3rd. #CES2017 pic.twitter.com/cjKSD5gROa
    — Faraday Future (@FaradayFuture) December 20, 2016

    Media pessimism is standard fare for disruptors. Deliberate negative info from press and competitors is the welcomed risk of innovation.
    — Faraday Future (@FaradayFuture) December 20, 2016

    1. Jay Cole says:

      Good find, had not seen that…will add that into the story for some context. Would have been nice if the retort would have been “hey we are paying all our bills now”, but take what you can get I suppose.

  11. J P DeCaen says:

    Maybe they can sell their “race car” to the Air Force for target practice. Does the A10 fire incendiary rounds? It would be better if it actually had a Li-ion battery in that case. Admit it, that would make a great YouTube video.

  12. Rann Spake says:

    I think reports of FF’s demise have been GREATLY exaggerated.

    They’re planning to have a big reveal on January 3rd and will be at CES this year.

    Being skeptical about a new EV startup should be expected, but we should reserve judgement until we see their first product.

    Best of luck Faraday Future, I’m rooting for you guys.

    1. Pushmi-Pullyu says:

      “It’s just a flesh wound!” — The Black Knight, “Monty Python and the Holy Grail”

  13. Mister G says:

    Why isn’t Bill Gates throwing money at FF?

  14. albertito says:

    So it’s not a easy task to fund a tesla-like company , so cheers to Elon from Barcelona.

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