Faraday Future said during an investor presentation on Wednesday that it plans to open a factory in China as early as 2025, despite capital shortfalls and an SEC investigation.
According to the SEC filing on Wednesday, the electric vehicle maker said it is looking for locations to manufacture its future vehicles and will serve as a local headquarters for the Chinese market. While Faraday has previously mentioned plans to expand into China, this is the first time the company has provided a few crumbs of detail.
Faraday’s announcement comes at a time when the country is thriving as a key market for electric vehicle makers, but in dangerous time for a troubled electric car maker.
An expansion in China may seem overly ambitious given the company is struggling to launch its first model, the 1,050bhp FF 91, while burning cash with little short-term revenue prospects. Jia Yuting, the Chinese founder of the company, who was forced to step down as CEO in April, he curtailed his powers in China after he refused to return due to allegations of financial fraud.
In May, CEO Carston Breitfeld warned that the company was running out of money. He also said at the time that the company plans to deliver the first FF 91 to customers in the third quarter of 2022. Its 1.1 million-square-foot plant in Hanford, Calif., is slated to open in July and will eventually ramp up capacity. He added that he would produce 10,000 vehicles annually.
According to the SEC filing, Faraday has about 90% of the hardware needed to build the car, which uses facial recognition technology, three 5G modems and nearly a dozen screens.
Meanwhile, he narrowly avoided being delisted by the Nasdaq in May by filing. overdue annual report 2021 and financial results for the first quarter of 2022. However, the results showed mounting losses and a lack of funds to build a second car, the FF 81 sedan, intended for the mass market.
The China plant will produce the FF 81 as well as the company’s third model, the FF 71 intelligent last mile delivery vehicle.
A presence in China will help the company cut costs, lead times and supply chain complexity, and quickly build and customize vehicles for the local market, Faraday said. The company said in a statement that “deep cultural roots in both the US and China provide a competitive advantage in the two largest electric vehicle markets.”
In February, the company also announced an agreement with South Korean manufacturer Myoung Shin to build the FF 81 at a former GM plant in Kunsan, South Korea, starting in 2024.
Faraday Future was not available for comment late Wednesday night.
Credit: techcrunch.com /