Faraday Future is Scaling Down

Feb 10, 2017 12:32 PM EST | Joyce Vega

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The planned mega factory will be scaled down to a 650,000 square foot from its initial 3 million square feet. The car production is scheduled to start once the plant is finished, then they will continue to work on the rest of the factory. Faraday Future is also reducing its product portfolio from seven vehicles to two.

CNET reported that Faraday Future was slapped with a lawsuit alleging unpaid bills upward of $1 million, linked to its Consumer Electronics Show unveiling. Faraday Future placed the blame on the plaintiff, which is likely to result in a long court case. The FF 91’s grand unveiling caused the company to lose a great deal of money. They had to shrink the Nevada factory plans in order to stay afloat. They also confirmed that they are reducing its product portfolio.

Faraday Future will be taking a slower, and more calculated approach so they can deliver on their promises despite not having enough money. This is not the first time an electric vehicle company has had cash flow problems. Tesla publicly admitted that they’re selling high-priced models in order to bring more money so they can grow their Electric Vehicle empire. By doing so, Tesla will be able to sell more affordable vehicles in the future.

Motor 1 reported that Faraday’s factory, once fully operational will be able to produce around 10,000 units annually, which will be considerably less than the 150,000 vehicles originally planned. Faraday Future’s factory was set to be up and running by the end of August. However, there are rumors that the smaller plant might not even open until 2019. In 2019 their new assembly plant in China’s Zhejiang province will start producing Faraday Future cars as well as models belonging to sister marque LeSee. The new facility will reportedly produce 450,000 cars each year from both brands.

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