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article imagePlans unraveling, Faraday Future asks $40 million for Nevada site

By Karen Graham     Mar 14, 2019 in Business
Faraday Future has experienced one financial crisis after another as it has vainly tried to make its mark in the automotive world. The cash-strapped startup is now selling its 900-acre factory site in Nevada for $40 million.
It was only a few years ago that Faraday Future made its debut at the CES 2016 - showing off its FFZERO1, a concept car that is is a single-seat sports car capable of producing as much as 1,000 horsepower.
The big news about the car was its flexible chassis that can be made longer or shorter. Not only that, but the chassis would be capable of holding a varying number of battery packs, depending on the size of the car.
In 2016, Faraday Future was already being labeled a major competitor to Tesla. The company, backed by Chinese investors with some serious money, also announced plans at CES 2016 to build its cars in a new Nevada facility.
Faraday Future s production model sedan  the FF91  was unveiled in 2017.
Faraday Future's production model sedan, the FF91, was unveiled in 2017.
The journey into a financial crisis
By July 2017, after a number of delays, Faraday Future had to abandon its plans for a $1.0 billion electric car mega-factory in North Las Vegas, Nevada. In April of 2016, when construction of the mega factory was supposed to start, Faraday's finances were in question.
At the beginning of the construction phase, additional required infrastructure which Nevada has formally agreed to build was held up pending verification of Faraday's financial soundness and its ability to raise the money to finance the entire project.
Of course, when Faraday was forced to abandon the factory in Nevada, a lot of people questioned what had happened to the $230 million in taxpayer's money the company received. And even then, Futuris, a company which specializes in luxury car interiors, had sued Faraday for breach of contract, demanding a payment of over $10 million immediately.
Faraday Future s FF 91 pre-production vehicle
Faraday Future's FF 91 pre-production vehicle
Faraday Future
Anyway, Faraday decided to shift its production of its flagship FF91 luxury car model to a manufacturing facility in Hanford, California. The company said the first of its new cars would be coming off the production line in 2018, but with mounting unpaid debt, disputes, and lawsuits in China and abroad, related to its founder Jia Yueting, production has yet to start.
In December 2017, Faraday's founder, Jia Yueting was placed on China’s official blacklist of debt defaulters after he failed to repay 762 million yuan (US$113 million) to two securities companies. One year later, in 2018, a British Virgin Islands court ruled in favor of To-Win Capital, a creditor of Jia, allowing it to proceed with freezing his 33 percent stake in Faraday Future.
The question remains - Will we be hearing more from Faraday or is the dream over?
More about faraday future, las vegas property, Lawsuits, Chinese entrepreneur, Financial problems
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