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Faraday Future Had the Worst Year Possible For an EV Startup (engadget.com)
Stop me if you've heard this one before: Faraday Future is almost out of cash. From a report: At the tail end of 2017, the much-hyped EV startup was sliding toward financial oblivion. But then a crucial round of funding from a then-mysterious benefactor gave the team a lifeline. Faraday planned to finish its first car, the FF 91, and start production before 2019. Like Tesla, the company wanted to usher in a new wave of electric, autonomous and "seamlessly connected" vehicles. But unlike its closest rival, Faraday hasn't spent the past year building and shipping transformative cars. Instead, it's been fighting the investor that decided to bail it out.
The beleaguered EV maker was originally saved by a company called Season Smart, which agreed to invest $2 billion, starting with an $800 million payment, in exchange for a 45 percent stake in the company. In June 2018, Season Smart was acquired by Evergrande Health, a subsidiary of a giant property developer in China, for roughly $853 million. Evergrande took control of Season Smart's stake and agreed to pay the remaining $1.2 billion, split into two $600 million chunks, in 2019 and 2020. As part of the updated deal, it took control of Faraday's assets and intellectual property.
For a while, everything seemed OK. Faraday began constructing a long-overdue factory in Hanford, California, where a Pirelli tire factory once stood. The company hoped it could eventually match Tesla's enormous Gigafactory in splendor and efficiency. But there was a problem. By July Faraday had already burned through its initial $800 million payment. To survive, the startup needed more money -- and it couldn't wait until 2019 for another cash injection.
The beleaguered EV maker was originally saved by a company called Season Smart, which agreed to invest $2 billion, starting with an $800 million payment, in exchange for a 45 percent stake in the company. In June 2018, Season Smart was acquired by Evergrande Health, a subsidiary of a giant property developer in China, for roughly $853 million. Evergrande took control of Season Smart's stake and agreed to pay the remaining $1.2 billion, split into two $600 million chunks, in 2019 and 2020. As part of the updated deal, it took control of Faraday's assets and intellectual property.
For a while, everything seemed OK. Faraday began constructing a long-overdue factory in Hanford, California, where a Pirelli tire factory once stood. The company hoped it could eventually match Tesla's enormous Gigafactory in splendor and efficiency. But there was a problem. By July Faraday had already burned through its initial $800 million payment. To survive, the startup needed more money -- and it couldn't wait until 2019 for another cash injection.
This is not news. This is a sob story with a poor headline and a bad summary.
And an editor who just won't edit. All of you, back to editor school. Off you go.
The beleaguered EV maker was originally saved by a company called Season Smart, which agreed to invest $2 billion, starting with an $800 million payment, in exchange for a 45 percent stake in the company.
ok
In June 2018, Season Smart was acquired by Evergrande Health, a subsidiary of a giant property developer in China, for roughly $853 million. Evergrande took control of Season Smart's stake and agreed to pay the remaining $1.2 billion, split into two $600 million chunks, in 2019 and 2020. As part of the updated deal, it took control of Faraday's assets and intellectual property.
How is that legal? Did they agree to 2bln for 45% or 800mln for 45% and 1.2bln for assets and IP?
Financed by the Chinese who have set electric vehicles as one of the industry's to dominate in the future (they have these 25 year plans and EV's are part of it) - Faraday hired a bunch of folks from U.S. car companies (Tesla mostly), siphoned off whatever knowledge they wanted and then pulled the money out and left the U.S. company to die. The Chinese manufacturers vehicles look really good actually - SUV's that look like SUV's (the G3 especially).
https://www.theverge.com/2018/...
The problem is that the founder made a habit of borrowing tons of money to start new companies, and is now unlawfully dodging his creditors. The new investors are (rightfully) concerned that his creditors will come after his Faraday Futures stock, which would have given them near control of the company. The creditors want their money, they don't want to run an electric car start-up (that can't makes cars). Therefore they might well decide to liquidate the company's assets.
SUV's that look like SUV's (the G3 especially).
You're kidding right? Is there supposed to be a /s there? I clicked that linked, those tiny things do not look like SUVs. They look like sedans that had an awkward growth spurt.
They should just borrow more money to pay back the other money
If only the CEO had told outrageous lies, insulted a hero, manipulated his stock, ripped off his investors, paid out himself and his friends n family through a bankruptcy scheme, treated his employees like shit and got stoned in an interview then they would have made it.
SUV's that look like SUV's (the G3 especially).
You're kidding right? Is there supposed to be a /s there? I clicked that linked, those tiny things do not look like SUVs. They look like sedans that had an awkward growth spurt.
Hav you been car shopping recently? The G3 looks like every other manufacturers soft SUV/cross-over.
I am Slashdot. Are you Slashdot as well?
I had a job offer a while back at FF. I thought it was in 2015 when I was still working at Ford, but maybe it was 2016. The company tried to stiff me on my travel expenses when I didn't take the job (it was like $300). You could smell the dysfunction at that place then.
The Gigafactory is where Tesla makes batteries is it not?
Tesla makes cars in the former NUMMI plant in Fremont.
Can someone explain why FF would want their car factory to match the splendor of Tesla's battery factory?
Already done
named after the franklin models 2, 3, 4, 5, etc all named a long time ago but just at a different company? Sounds like there is something else they are trying to name
isn't this exactly what Musk said he wanted? Cheap electric cars for all, doesn't matter who makes em.
Your article doesn't even mention Faraday. Moreover the article mentions similarities with Tesla because Tesla opensourced their patents.
The reason why Faraday went bankrupt was because LeEco the main company who owned Faraday went bankrupt, not because of some stupid conspiracy to siphon off knowledge.
Except the tariffs mean we won't be able to afford these new Chinese EVs, and we won't have one of our own.
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An investor drops out? That's the worst possible thing that can happen?
There was no meteor strike on the main office, releasing a strain of bacteria that turned their hair blue and caused impotence? Termites didn't evolve a taste for flesh and start drilling into their feet? Global warming didn't atmospherically create a lens that concentrated all the warming right over their office, roasting them like ants? Giant birds of prey didn't swoop and steal parts from their cars in the middle of the night?
(reads the article). Oh, they switched to an open office plan. I guess that is the worst possible year.
"First they came for the slanderers and i said nothing."
That's okay, Trump will probably announce financing for coal-powered cars companies pretty soon.
#DeleteFacebook
I knew Faraday Future was trash.
Actually, if you want to power cars with coal, then EVs are the way to do it.
This is a cross over. Repeat after me SUV != crossover. They serve two different markers. One is for rich white women to feel superior, the other is for middle class people, to give them a sense of belonging.