Faraday Future Downsizes Las Vegas Factory Following Financial Problem
Faraday Future had to downsize its factory in the Northern Las Vegas after being hit by financial problems and some lawsuits. The company is now taking a few steps back to re-evaluate their action.
After a successful presentation in the CES 2017 to introduce its luxurious electric car line-ups, the Chinese-funded company announced to trim down its factory by more than 70 percent of its original plan. According to Reuters, the company had to scale down its planned 3 million square feet factory to only 650,000-square-feet.
Las Vegas city official told that the company will downsize its factory on Jan. 31. Previously, Faraday Future factory manager Qiong Liu informed the city regarding the change of plan. However, Faraday Future promised to continue its $1 billion investment in the State of Nevada.
The company denies to scale back its investment plan, In its media statement released on Feb. 3, Faraday future reiterated its commitment to building the manufacturing facility in the APEX Industrial Park, North Las Vegas, Nevada.
"We remain committed to the State of Nevada,” Faraday Future said in the official statement. The company promised to continue the plan to invest the promised $1 billion in Nevada for the next few years.
In CES 2017 last January, Faraday Future introduced its prototype electric car. The FF91 was presented to be a luxurious crossover in front of the audience of the largest consumer electronic exhibition. However, the company did not mention its detailed production schedule of the FF91.
Prior to the CES 2017 presentation, Faraday Future was sued by a special effect company The Mill Group that designed the materials used for the event. The Mill said that Faraday Future still owed them $1.82 million for the graphic presentation. They claim that from the agreed $1.82 million, Faraday Future only paid $20,000.
Faraday Future has also been under scrutiny for its financial solidity. During the construction of its Nevada factory, the company failed to provide a $75 million performance bonds.
The amount was required by the State of Nevada to issue infrastructure development bonds. Subsequently, the construction was halted in November last year. Nevertheless, Faraday Future continued its preparation for the CES 2017.