Faraday Future’s Struggles Continue

5 days ago by Steven Loveday 27

Faraday Future

Faraday Future FF 91

It seemed that Faraday Future may have recently turned a corner toward the positive, however, that small dose of good luck may have just run out.

Faraday Future has had more than its share of issues throughout its early stages of pursuing a role as a disruptive electric automaker. The company’s unofficial leader and only named investor, Jia Yueting, cut off his funding (or ran out of money) and left his role. Shortly thereafter, the automaker canceled plans for not just one, but two would-be factories. Not to mention mounting debts, lawsuits, and a whole slew of other issues, which we’ve been reporting on since the beginning.

Faraday Future Hanford factoryRendering

Faraday Future Hanford factory rendering

Recently, former BMW and Deutsche Bank money man, Stefan Krause, joined the company and took the helm as its chief financial officer. It appeared that if anyone could get Faraday out of the red and moving in the right direction, Krause was the man. Shortly after Krause stepped in, the automaker was able to pay off its debts and lease a factory in California. Though the original plans would be scaled back substantially, this was finally a step in the right direction.

Now, the company’s good luck has turned around once again. According to Jalopnik (via Slash Gear), CFO Stefan Krause has packed his bags. In fact, he resigned back on October 14, effective immediately. Krause was only with the automaker since March 2017. During his tenure, his primary focus was to get Faraday’s balance sheet back in order and secure a billion dollars in new investments. He obviously made significant headway in a short time period, but now Faraday is on its own once again.

It was also reported that many of the new investors secured by Krause wouldn’t commit unless Jia Yueting officially removed all ties to the company. Of course, though Yueting is no longer contributing financially and has little involvement, he would not agree to the proposition. For this reason, many investments never panned out. While Krause hasn’t disclosed why he left, there’s speculation that it is connected with the issues surrounding Yueting.

According to The Verge, CTO Ulrich Kranz and manufacturing chief Bill Strickland have also departed Faraday along with several employees from multiple departments.

Source: Slash Gear

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27 responses to "Faraday Future’s Struggles Continue"

  1. wavelet says:

    I thought they were already “D-E-D dead”, to quote the 1954 Sinatra movie Young At Heart.

    It was also a puzzle why someone who’s considered a responsible adult like Krause would let his name get sullied by FF.

    1. earl colby pottinger says:

      He did not, that is why he left as soon as he could see that the company would not do what he thought was needed to have to survive.

  2. Pushmi-Pullyu says:

    “Now, the company’s good luck has turned around once again.”

    The failures of Faraday Future (What future? Even the name is a lie!) have nothing to do with luck, and everything to do with gross mismanagement which ought to be criminal (for wasting so much of other peoples’ money) and a business strategy so wildly unrealistic that it looked like a scam to many, including myself. If it was not an outright scam, then at the very least the business plan was astonishingly inept and clueless, coming from someone with experience as a businessman.

    It truly amazes me that any sane and capable businessman would try to step in and save the company. What is there that’s worth saving? What does FF have that’s worth spending even one penny or one minute of time on?

    I continue to be mystified that InsideEVs would inconvenience so many electrons in reporting on this failure of a company. As far as I’m concerned, the only thing that makes FF worthy of any attention or discussion is as an object lesson in how not to run a startup business.

    1. ffbj says:

      You point that it is an object lesson, which in and of itself makes it newsworthy.

      1. Pushmi-Pullyu says:

        There might have been a place for one or possibly two InsideEVs analysis articles on object lessons from the failure of Faraday Future, if InsideEVs had not already given FF far, far more attention than it ever deserved. But such analyses certainly would not qualify as “news”.

        * * * * *

        I’m still looking forward to the day when the word “Faraday” disappears from the menu at the top of every page of InsideEVs’ website. Hopefully I won’t have to wait much longer!

  3. ffbj says:

    Bartender: Why so glum?
    The Future: My date stood me up.

  4. Some Guy says:

    Come on, be fair. FF wil not only be remembered as a total failure.
    There is a very thoroughly graded area in North Las Vegas, and a few yellow painted posts in an otherwise empty building. That’s what they will be remembered by, I’m certain!

    1. Pushmi-Pullyu says:

      😉 Well said!

    2. ToMarsAndBeyond says:

      Your list of tragedies is incomplete, but a good start. Though I feel sorry for every guy and gall that put their heart and soul into this “company”.

      1. Maybe those Yellow posts in that building will work as Guideposts: “Warning – Use White Paint!”

        Or, as markers for a Drone Race Course!

  5. ToMarsAndBeyond says:

    Great newsworthy article. Thanks! InsideEV’s ROCKS! Faraday Future is really an interesting study in how not to run a company. It puzzles me greatly how a savvy businessman like Jia Yue Ting who had great success in China could take such a bad turn from great business decisions to some of the worst I have ever seen. It’s a story about becoming overly confident and losing sight of reality.

    1. Pushmi-Pullyu says:

      The reports that Ting pulled money out of FF to fund his other projects, suggest a more cynical and less honest reason for the claims made by this company being so utterly disconnected from reality.

      1. ToMarsAndBeyond says:

        Dare I say “opportunistic”? I find it very hard to follow the reason of Jia Yueting to start funding three(!) electric car start-ups at once (Faraday Future, LeSee, Lucid) while barely having the money for one. Spread the money too thin and it’s….gone. That’s where we’re at right now. Poor Stefan Krause who tried his best to keep the ship afloat and getting blamed for it….quite the developing story here.

  6. Longy says:

    Just don’t announce anything to the public until the first production vehicle is ready.

    1. Al says:

      Exactly!, Just like Tesla’s Model 3.

      1. ToMarsAndBeyond says:

        Apples and Oranges. Tesla has the funding in place and proved the naysayers wrong time after time. Faraday Future proved the naysayers right, time after time.

      2. Pushmi-Pullyu says:

        Wut?

        Tesla unveiled the Model 3 more than a year before the first production vehicle rolled off the assembly line. Tesla showed off production prototypes of the TM3 at a media event on March 31, 2016.

        Are memories really this short, or is this just more fake history from Tesla bashers?

        https://www.popsci.com/what-you-missed-if-you-missed-tesla-model-3-reveal

  7. Otis Day says:

    stick a fork in it already – it’s done

  8. D-fender says:

    To all the haters out there! Do you hate the EV industry that much?? Or just hate competition from the ones that are trying very hard to make a difference?? Why not publish some words of encouragement?? I know you are deeply in love with Tesla. I like Tesla also but Personally I hope every EV start up succeds!!!!

    1. earl colby pottinger says:

      No, we just hate people who run there EV companies so badly that non-EV companies can point to them and tell people not to buy any EV because all EV companies are like that.

      After-all, you don’t see these type of comments about the RIMAC or even Lucid or NIO.

      Heck, all the negative comments about the Bolt, Leaf and other EVs added together will not add up to the negative comments the FF has generated.

      We are not putting EVs, we are putting down badly run companies of which FF seem to be king of.

    2. Pushmi-Pullyu says:

      “…hate competition from the ones that are trying very hard to make a difference?? Why not publish some words of encouragement??”

      Investor money is not an infinite resource, and most startups fail. We should not invest money indiscriminately in all startups; we should reserve that finite resource for businesses which have at least some chance of success. Those of us who are capable of recognizing the warning signs of a business guaranteed to fail, have a social obligation to warn those who aren’t so savvy.

      Arguing that we shouldn’t post warnings about Faraday Future is just as irresponsible as arguing that if we see a bridge on a road in imminent danger of collapse, nobody should put up a roadblock or a sign warning of the danger. No, all responsible adults have a social obligation to warn others about a bridge obviously in danger of imminent collapse.

      Faraday Future is in the process of collapsing, and nobody should be throwing good money after bad to try to save it. Why is it that you think people shouldn’t be warned?

      “I know you are deeply in love with Tesla. I like Tesla also but Personally I hope every EV start up succeds!!!!”

      Why is it that some people want to make everything about Tesla Inc.? Sure, since I’m an EV advocate, I’m also a Tesla fan, just like most EV advocates. But if Tesla didn’t exist, I’d still be trying to warn people away from businesses like Faraday Future and (Project) Better Place; businesses with ridiculously impractical business plans, for whom failure is inevitable. Just because a business is EV-related doesn’t mean we shouldn’t practice discrimination… the good kind of discrimination!

  9. Michael Will says:

    I find the whole ff adventure rather disappointing, I had hoped they would actually build a factory that tesla could buy for cheap when ff went out of business, but they did not even achieve that..:

    1. Follow The Money!
      While some may have lost money here, you can be sure quite a bit of the $ ended up in some peoples pockets!

      But it might be an interesting vehicle they made, for a collector, at least!

      1. Pushmi-Pullyu says:

        Well yeah, all of two concept cars… one of which according to reports didn’t even have interior fittings.

        I guess that would make the one concept car which was finished a “collector’s item”, in the same way an Edsel is a collector’s item! 😉

  10. Someone out there says:

    It was obvious from day one that FF was a vanity project. The guy wanted to be the next Elon Musk but he had no clue what he was doing.

    1. Pushmi-Pullyu says:

      Or, maybe he did know what he was doing, which was to attract investor money to divert to his other businesses. Now, maybe that wasn’t really his plan all along; maybe he really was that clueless and/or that ridiculously overconfident and/or outright crazy.

      We may never know for sure.

  11. Terawatt says:

    Thanks for the update, it’s been mostly silent around FF for a while. I’ve been among those who never managed to take the company seriously from the FF Zero onwards, so in a way it feels good to see them fail… but really, we need some other upstarts besides Tesla to get something going. And on that note, what’s up with Lucent..? I for some reason have the idea that they were sharing technology with FF, but apart from that the company just seemed much more professional, and certainly much better at managing their image. Rather than show off some ridiculous batmobile that makes people laugh or cry, they showed a car that seemed genuinely desirable – and promised a version with a very aggressive price tag (but not the wonderful reclining seats) would follow. Any news on Lucent at all..?

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