Faraday Future Faces Foggy Future: Executives Fleeing, Bills Unpaid, Only 60 Paid Reservations

5 months ago by Steven Loveday 16

The supposed “Tesla Killer”, Faraday Future, has tallied a whopping 60 paid reservations, for its FF91, to the Tesla Model 3’s record-breaking 400,000. Even with the “claims” of 64,000 (unpaid) reservations, killing Tesla seems a bit far-fetched, especially when considering the plethora of struggles the startup is facing. Actually, amounting to anything at this point, seems far-fetched.

Faraday Future Presented The FFZERO1 Concept Last January At CES In Las Vegas

Faraday Future Presented The FFZERO1 Concept Last January At CES In Las Vegas

Global CEO Ding Lei left the company awhile back, and since then, more than a half-dozen other top brass have bailed out. Lei quit Faraday prior to the unveiling of the FFZERO1 last January in Las Vegas. Apparently, he didn’t want his name attached as the company went public.

The company doesn’t have a CEO now, and hasn’t ever really had one. Reportedly, there have been two unofficial CEOs: Chaoying Deng who left the position in October of 2015, and David Wisnieski, who left sometime in 2016. Lei, along with Jia Yeuting, have been the two named “faces” for the company. Lei is a top executive at LeEco, Faraday’s sister company. Jia comes and goes, and only has power over the company due to being its only named investor. Recent reports say that he is very unpopular in Beijing at the moment.

Sources familiar with the matter told Business Insider (BI) that the company’s corporate structure is a disaster. Especially in terms of relations between the U.S. team and Beijing:

“The US management team really had no say and had to do what [Jia] wanted because he was paying for everything.” 

“There were times that the Beijing team would come out and learn what we were doing but were working on their own designs and then they would go back.”

As we recently reported, Faraday has run out of money. There was talk of some contributions to alleviate some of the issues, but there has been no word as to whether or not those have come through. Even if so, the small amount of income was barely enough to make a dent. Work has been put on hold on the company’s Nevada factory. A source that spoke with BI admitted:

“If CES doesn’t bring in fresh investors, it’s over between February and May.”

Another source at Faraday said that Jia was told to keep spending money and pushing, even though the factory construction essentially stopped before it started, and Faraday was being sued by at least two companies, for unpaid bills. The company was being told that the money would come eventually. At that point, about $10 to $15 million per month was coming in. This was only a fraction of what Faraday needed:

“There was no visibility about when the money would arrive — we were told to continue making commitments to suppliers.”

“If they can’t figure out a way to get the money out of China in the next 60 days, the suppliers would essentially force them into bankruptcy.”

Though the company unveiled the FF91 a few weeks back, there were many unanswered questions. The car failed to park itself. Sources inside the company told BI that the car isn’t even close to being production ready. However, Faraday is touting a production date of 2018. The inside source said of the unveiling:

“All that stuff at CES was just a bunch of bulls—, (the car) isn’t even close to being complete.” 

And the story goes on and on and on …

Source: Business Insider

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16 responses to "Faraday Future Faces Foggy Future: Executives Fleeing, Bills Unpaid, Only 60 Paid Reservations"

  1. Someone out there says:

    Sounds like Faraday Future is all about getting attention rather than any actual interest in creating a car. A vanity project, nothing more.

    1. R.S says:

      I think it sounds like Jia, not FF. I don’t doubt that the guys and gals at FF would want to develop and eventually produce a working EV. But Jia just seems to let FF do all the work for free, basically.

      As far as I have heard, all the intellectual property belongs to another company, seated in some tax haven, Cayman Islands, or something like that. So once FF is bankrupt, he still owns everything that has actual value, but he basically got it for $10 million a month.

      That guy is a genius!

      1. Kdawg says:

        Then open shop in China for 1/10th the cost.

  2. Big Solar says:

    Nobody saw this one coming. ha.

    1. ffbj says:

      No.Kidding I could go back and find all the derision I poured on them from inception, but why bother. I called them Flim Flam from the start, and their were a number of people in that balcony at the time, which was always welcoming more critics.

      1. SJC says:

        FF is accumulating debt to help other companies in the group, it might go under.

  3. Pet says:

    It’s not a good thing to see a electric car company fail. I wonder if one of the big car companies would be interested in taking it over.

    1. Terawatt says:

      It’s pretty silly to expect a company to succeed just because it’s in an industry you like. If any industry offered certain profits however much idiocy you put forward, it would quickly get flooded by new companies. Instead, new industries often have higher fail-rates than established, well-understood ones. FF in my view has no reason to exist. It’s a shallow company and it’s been acting incredibly arrogantly, telling everyone how amazing they were first and not really showing it ever. You can make teasers and use this messaging between the lines if you have the street cred, but when you don’t it just comes off looking extremely clumsy.

      I’m glad they are going under. The EV industry needs better companies than this piece of *hit.

    2. ItsMagic says:

      There is nothing to take over. The IP is not owned by FF.

    3. Stimp says:

      It’s a good thing for the EV industry to quickly separate the wheat from the chaff, as they say.

      We don’t want ridiculous phantom Homermobiles bringing down the chances of the more serious manufacturers.

  4. Terawatt says:

    I used to call them Faraway Future. That now seems a bit misleading. From now on we may have to call them Faraday Foreclosure, or Fast Failure, or Far-fetched Future, or …

    1. MikeG says:

      Faraday Farce?

      1. Pushmi-Pullyu says:

        Either that, or Faraday Failure. Both seem highly appropriate.

  5. John Hollenberg says:

    Faraday’s Future has already passed

  6. Roy_H says:

    It’s too bad really, getting into the auto manufacturing business is really hard. Almost everyone has failed in the last 80 years! They had partly the right idea, that is to aim for a high priced niche market with low volume production. Buy as much off the shelf parts as you can (seats, windows, etc.) Keep costs down, small factory, hand built….

    1. Pushmi-Pullyu says:

      I didn’t see many off-the-shelf parts in that ridiculous “batmobile” empty shell of a pretend concept car.

      Nor was FF keeping down costs by hiring many more high-profile executives than they needed before they even built a factory, or by ridiculous overspending on advertising like $1.8 million for a 3D computer simulation.

      You also don’t help a company succeed by taking money out of it to fund other companies!

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