Faraday Future's Big Reveal

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LeftieBiker said:
Unless they made the LeCar (joke) I've never heard of them before this.
They were both pushing LeSEE (https://techcrunch.com/2016/09/20/chinas-leeco-raises-1-08b-to-build-its-electric-sports-car/ and https://www.engadget.com/2016/04/20/leeco-lesee-electric-car-china/) AND Faraday Future.

They were also trying to buy Vizio before that fell through: https://www.theverge.com/2017/4/10/15246058/leeco-vizio-acquisition-cancelled.

It seems unlikely either vehicle will ever ship or will ever ship in significant quantities before the company either goes BK or sales and support are dropped.
 
cwerdna said:
LeftieBiker said:
Unless they made the LeCar (joke) I've never heard of them before this.
They were both pushing LeSEE (https://techcrunch.com/2016/09/20/chinas-leeco-raises-1-08b-to-build-its-electric-sports-car/ and https://www.engadget.com/2016/04/20/leeco-lesee-electric-car-china/) AND Faraday Future.

They were also trying to buy Vizio before that fell through: https://www.theverge.com/2017/4/10/15246058/leeco-vizio-acquisition-cancelled.

It seems unlikely either vehicle will ever ship or will ever ship in significant quantities before the company either goes BK or sales and support are dropped.
LeEco cuts 325 U.S. employees, will focus on Chinese-speaking consumers
http://www.cnbc.com/2017/05/23/leeco-layoffs-325-employees-gone-refocus-on-chinese-speaking-consumers.html
LeEco confirmed on Tuesday that it will lay off the bulk of its U.S. workforce, as CNBC first reported Monday evening. According to CNET, the company is cutting 325 employees, or 70 percent of its workforce. LeEco did not immediately respond to CNBC's request for comment.
LeEco cuts most of US workforce as it continues its downward spiral
https://www.theverge.com/2017/5/23/15680700/leeco-layoffs-problems-faraday-future-funding

LeEco slashes 325 jobs, layoffs hit San Jose workforce
http://www.mercurynews.com/2017/05/23/leeco-slashes-325-jobs-cuts-batter-san-jose-workforce/

Besides LeSEE and funding Faraday Future. Someone reminded me they were also helping fund Atieva, now called Lucid Motors.
https://www.recode.net/2016/10/20/13341340/atieva-launch-december (from Dec 2016):
Questions, however, remain about Atieva’s ownership and future. Its board and management remain conflicted about the direction of the company. Chinese technology company LeEco has a stake in Atieva, but also controls rival EV startup Faraday Future.

LeEco’s founder Jia Yueting announced today that Faraday Future would be unveiling its first production car at the Consumer Electronics Show in January, and that LeEco itself is moving forward with a semi-autonomous electric car called the LeSee Pro.
 
Faraday Future halts plans for car production at Apex site:
https://www.reviewjournal.com/business/faraday-future-halts-plans-for-car-production-at-apex-site/

Faraday Future cancels plans for North Las Vegas factory:
http://www.autoblog.com/2017/07/10/faraday-future-cancels-plans-for-north-las-vegas-factory/
 
Faraday Future loses three top executives as manufacturing stalls
https://www.theverge.com/2017/11/10/16633542/faraday-future-stefan-krause-resignation-bmw-trouble

Faraday Future issues bombastic statement accusing former CFO of ‘malfeasance and dereliction of duty’
https://www.theverge.com/2017/11/10/16635798/faraday-future-stefan-krause-jia-yueting-drama
 
The Verge: Faraday Future’s chief designer resigns, as some employees stop showing up to work
https://www.theverge.com/2017/12/1/16723394/faraday-future-richard-kim-designer-resignation
 
Faraday Future now flush with money pushes for FF91 production, does high-speed tests
https://electrek.co/2018/07/24/faraday-future-ff91-production-high-speed-tests/

Faraday Future’s Chinese operations are taken over by new investor after CEO’s fall from grace
https://electrek.co/2018/08/15/faraday-futures-chinese-operation-investors-ceo-fall/
 
Via IEVS:
Faraday Future Reports Problems With Evergrande Health’s Investment
https://insideevs.com/faraday-future-reports-problems-with-evergrande-healths-investment/

Faraday Future seems to have run into a roadblock again, as there are serious problems with the investment from Evergrande Health. Under the deal, Evergrande Health Industry Group Limited (Evergrande Health), a Hong Kong Stock Exchange listed company, was expected to take 45% state for $2 billion (33% would remain in hands of the original shareholders, and 22% belongs to the team at FF.)

Initially, Evergrande Health provided $800 million and Faraday Future moved forward with developments of the FF 91 and preparations for production.

Evergrande Health even agreed to pay another $500 million out of the remaining $1.2 billion earlier than originally expected, but ultimately it put the money transfer on hold and the future again becomes far away uncertain for Faraday.

Faraday Future is now in a difficult situation, because the money is needed, and other investors – that would willing to step-in – are blocked. At least that’s what we understand from FF’s perspective. . . .
 
Via ABG:
Faraday Future lays off part of its workforce, cuts wages of the rest
EV automakers' contractors are looking to be paid
https://www.autoblog.com/2018/10/22/faraday-future-layoffs-wage-cuts/

The future of Faraday Future is starting to look bleak. The electric car startup has laid off part of its workforce and is slashing the wages of its employees by 20 percent, as first reported by The Verge and confirmed in a statement from a company spokesperson. The move comes as the company is in the middle of a standoff with its primary investor.

Staffers learned of the cuts via a Sunday email from CEO Jia Yueting. The chief executive will be decreasing his salary to $1, and some members of management are taking salary cuts beyond the 20 percent threshold, though that likely won't provide much comfort to the folks in the factory seeing their pay reduced starting next week. . . .

While Faraday Future takes a hatchet to its workforce, the company is also dealing with a number of contractors knocking on its door and demanding pay for back work. It's starting to look like the lights might go out on the electric car maker. . . .
 
Via IEVS:
Faraday Future’s “Backbone Of The Company” Departs
https://insideevs.com/faraday-futures-backbone-of-the-company-departs/

According to The Verge, Peter Savagian – Senior VP, Engineering at Faraday Future – departed the company, which could be another major blow after problems with raising capital to complete and launch its electric car FF 91.

Savagian was former chief engineer of GM’s EV1 (18 years at GM in total), and joined FF in 2016 becoming one of the key people in the company leading the development of the powertrain and battery. . . .

Followed today, via ABG:
Faraday Future co-founder quits: 'The company is effectively insolvent'
https://www.autoblog.com/2018/10/30/faraday-future-co-founder-quits/#slide-4334663

Chinese electric vehicle developer Faraday Future's co-founder Nick Sampson has resigned, tech news website The Verge reported on Tuesday, a week after the cash-starved company planned pay cuts and layoffs to reduce operational costs. The website also said the layoffs weren't enough, and the company was going to shut down some operations — and some of the workers who survived the layoffs were being furloughed without pay.

The move comes as the company is embroiled in a stand-off with its primary investor, China's Evergrande Health Industry Group, after a planned $2 billion investment went sour. And Sampson's resignation comes one day after His departure comes just one day after longtime GM exec Peter Savagian, Faraday's senior vice president of technology and product development, also left. . . .

  • "The company is effectively insolvent in both its financial and personnel assets, it will at best will [sic] limp along for the foreseeable future. I feel that my role in Faraday Future is no long [sic] a path that I can follow, so I will leave the company, effective immediately," Sampson wrote. "I cannot continue knowing the devestating [sic] impact we are having on the lives of our employees, their families and loved ones as we as the [sic] ripple effect this will have on lives throughout our suppliers and the industry as a whole."
Where's Dandy Don when we need him?
 
And now, via IEVS:
UPDATE: Faraday Future founding executive Dag Reckhorn has resigned, leaving Jia Yueting as the sole remaining founding executive. His departure letter explained the decision in part:

“I am heartbroken to have to let you know, that I will leave FF effective today. There are legalities that force me to do so. Please do not believe that I am ditching the best team I ever worked with.”
https://insideevs.com/faraday-futures-backbone-of-the-company-departs/

[Cups hand to ear] Is that Wagner I hear?
 
Via IEVS/GCR:
Faraday Future Employees Start GoFundMe Campaign
https://insideevs.com/faraday-future-employees-gofundme-campaign/

Brother, can you spare a dime to keep a dream alive?

The auto industry is famously difficult to break into, but when Faraday Future first appeared on the scene with a billionaire backer there was hope that the same lightning that had struck Tesla might also put the spark of life into this new venture. Since then, times and fortunes have changed. Dramatically. So much so that the few FF employees that remain have started a crowdfunding campaign to help their laid-off comrades pay their bills while their employer looks for more investment capital to keep the company alive. . . .

Apparently, even a small legal victory and the release of an inspirational video wasn’t enough to keep the band together, and founder and CEO Jia Yueting said goodbye to the final three members of his founding five group of executives last week.

As Yueting casts about for $500 million in fresh funding, his employees are trying to raise a more modest $50,000. The “FF Manufacturing Family Funding” campaign on GoFundMe, started by the manager of tooling and equipment for Body-in-White production Hector Padilla, seeks cash to ease the burden on those affected most by the downward turn of events — manufacturing partners who were laid off or put on mandatory furlough.

It’s having a modicum of success. As of this writing, it’s collected $16,602 after only five days of its expected two-week life. We wish them good luck in reaching their goal.
 
palmermd said:
This is really old news.
Not mentioned here before, AFAIA, and the first I'd heard of it. Not that I think it matters, as the company appears to have been loaded onto the plague cart, and this amounts to feeble cries of "I'm not dead yet".
 
Perhaps they should change the name from Michael Faraday to Mark Twain.

Rumors of their death have been spread for years. Most of it is just click bait articles that are written to attract views and don't have any firsthand knowledge of the company.

But I agree that their situation does not look good. Odds of pulling out are not great.
 
GCR:
With cease-fire agreement, spark flickers toward Faraday's Future
https://www.greencarreports.com/new...reement-spark-flickers-toward-faradays-future

. . . The company, which sputtered to a start building prototype electric luxury cars last year, then was abruptly knocked out when its new Chinese financial backer withheld funds in a contract dispute, has reached a new agreement with its benefactor, with each side agreeing to retire lawsuits against each other, and Faraday receiving the green light to seek new investment.

The company controls a leased factory in California and has several prototype vehicles, but furloughed most of its staff last year after it ran out of money in a power-control plot that looked cut from the script of a cheesy wrestling show.

Along with that staff went all five of the company's founding executives, including Peter Savagian, a member of the original GM EV1 team, and Dag Reckhorn, the former head of Model S manufacturing at Tesla. The only founder left is the company's original financial backer, Jia Yueting, a collegial fellow known with affection within the company's ranks, but who sits at the center of many of its controversies.

In November, Faraday received permission from a Hong Kong court to seek up to $500 million in new investment as it worked to settle its differences with its primary backer, Evergrande Health group, a health insurance company in Hong Kong. . . .

What is less clear is where any new funding might come from for a company with a few roughly assembled prototypes and a leased factory, but no experienced executives to run it. Many of the furloughed factory workers may well still wish to come back to Faraday, but many others will have to be replaced by new workers who would have to be trained from scratch.
 
palmermd said:
Perhaps they should change the name from Michael Faraday to Mark Twain.

Rumors of their death have been spread for years. Most of it is just click bait articles that are written to attract views and don't have any firsthand knowledge of the company.

But I agree that their situation does not look good. Odds of pulling out are not great.

I think a better analogy is the running gag on SNL Weekend Update during the original cast period. "Generalissimo Francisco Franco is reportedly still dead...."

https://www.youtube.com/watch?v=GwSh0dAaqIA
 
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