Is Faraday Future the next Tesla, or will it follow Fisker and fizzle out?

By Ronan Glon December 16, 2016

Faraday Future FFZERO1 Concept — Image used with permission by copyright holder

California-based, Chinese-backed startup Faraday Future is counting down the days until it introduces its first production car at the Consumer Electronics Show (CES) that’s taking place next month. The brand appears on track for success, but a damning new report finds that all is not well under the surface.

A supplier named Futuris that manufactures and tests seats is taking Faraday Future to court over $10 million in unpaid bills. A separate lawsuit filed by Beim Maple Properties accuses the company of not paying rent on a warehouse to the tune of $104,950.50. And that may be just the tip of the iceberg; employees who wished to remain anonymous told Buzzfeed News that the company’s debt amounts to over $300 million.

The unstable financial situation has allegedly sent shockwaves through the young company. Some suppliers decided to cut ties with Faraday Future, and a few employees have resigned this year. One of them pointed out that getting work done was a real challenge because suppliers routinely put orders on hold due to missed payments. Another noted that his team’s size was slashed in half without warning.

“Month to month, the money was never there. Funds were lower than what Faraday needed to cover operational costs and commitments to suppliers,” summed up a former employee in an interview with Buzzfeed News.

Faraday Future’s financial troubles have also impacted construction work on the $1.3 billion factory it’s building in Nevada. The project was put on hold in November because AECOM, the firm in charge of the project, is waiting for $58 million in late payments. While AECOM is confident construction will resume in a timely manner, Nevada officials are much more cautious. They gave Faraday $219.5 million in tax incentives, but they have a plan to protect the state’s interests in case the company’s dream to beat Tesla at its own game fizzles out.

Faraday Future couldn’t be reached for comment. CES is two weeks away, so we won’t have to wait long to find out whether it can deliver a production car as promised, and what the future has in store for the company.

Editors' Recommendations

Topics

Contributor

Ronan Glon is an American automotive and tech journalist based in southern France. As a long-time contributor to Digital…

Cars

Mercedes-Benz EQG: range, price, release date, and more

Concept image of the larger electric G-Wagon

The G-Class is going electric. We already knew that Mercedes-Benz was working on an electric, small-size G-Wagon, but it looks like the company is also working on a larger G-Class SUV, in the form of the EQG. In fact, Mercedes has gone as far as to show off a concept version of the off-roader.

While there's much we don't know about what will become the production model of the EQG, Mercedes has also shared a lot about it. Curious about whether the Mercedes-Benz EQG could be the EV for you? Here's everything we know so far.
Design
Fear not -- the EQG will retain many of the design aspects of the G-Class that you already know and love but with a modern face-lift. The EQG will keep the boxy design that gives the G-Class a classic look but with some additional modern styling, at least if the concept version is anything to go by.

Cars

Rivian R2 vs. Kia EV9: battle of affordable electric SUVs

Kia EV9 GT-Line Three Quarters

The long-awaited Rivian R2 has finally been announced, and it's an excellent option for those who want an electric SUV that doesn't completely break the bank. Sure, the R2 isn't cheap -- but it's a whole lot cheaper than most other EVs out there, especially when it comes to SUVs. But Rivian isn't the only company trying to tackle the problem of the budget electric SUV. The Kia EV9 is finally available, and it too offers a modern design and a range of helpful features.

Given the fact that the Rivian R2 and Kia EV9 are two electric SUVs in a similar price range, you might be wondering which is better for your needs. That's why we put the Rivian R2 and the Kia EV9 head-to-head.
Design
Both the Rivian R2 and the Kia EV9 are actual SUVs -- not crossovers pretending to be SUVs, like plenty of other EVs out there. The two vehicles offer big, boxy designs and plenty of interior space, making them excellent options for families or those who need that extra storage.

Cars

Rivian R2 vs R1S: How will Rivian’s cheaper SUV compare?

The front three-quarter view of a 2022 Rivian against a rocky backdrop.

Rivian has finally unveiled the R2, its long-awaited attempt at a more affordable electric SUV. The new vehicle may not be available just yet, but fans of Rivian's design aesthetics and feature set are already looking forward to being able to order the new car. The R2 is targeted at being a more affordable take on the electric SUV and will sit alongside the flagship-tier R1S.

Let's get this out of the way right now: The R1S is most likely going to be a better vehicle than the R2. Rivian isn't replacing the R1S with the R2 — it's releasing the R2 as a more affordable alternative, and there will be some compromises when buying the R2 over the R1S.