This week the startup that had huge plans – actually dreams of competing with Tesla and the premium automakers joining the green segment – has received a wake-up call and had to rethink its strategy.
If you’re remotely interested in the green segment you’ll know that among the more prominent startups that decided to fight it out with Tesla was one Faraday Future – and they arguably ignited the acceleration war as they claimed to be faster by just 0,01 second than a Tesla Model S to 60 mph. Big talk aside, the company did present one vehicle – the FF91 at CES this year. But it was all downhill from there – because they lost along the way the backing of their main supporter, Chinese mogul Yueting Jia, owner of LeEco and countless other businesses. And there were numerous reports that work at the North Las Vegas production facility that had begun early this year weren’t advancing.
Now it’s all official – Faraday Future CFO Stefan Krause announced they decided to halt the work on their own factory… wrapping it in business strategy shift: “We at Faraday Future are significantly shifting our business strategy to position the company as the leader in user-ship personal mobility — a vehicle usage model that reimagines the way users access mobility. As a result of this shift in direction, we are in the process of identifying a manufacturing facility that presents a faster path to start-of-production and aligns with future strategic options.” This would be a logical course of action when you’re cash strapped – instead of burning through one billion dollars they’ll need just 80 to 100 million to use an existing production facility. No word on the FF91 though – so that’s a big question mark for their first model.