As Faraday Future edges towards the release of its first production vehicle at CES next month, the company would want nothing but positive publicity. Unfortunately for FF, more details are emerging of the brand’s financial woes.
In a comprehensive investigation by Buzzfeed News, it is revealed that by July 2016, the electric startup had accrued over $300 million in debt due to missing supplier and vendor payments. Additionally, Faraday was over 30 days overdue on in excess of $100 million worth of payments to vendors and suppliers at the same time, according to a former employee.
Things then got worse last Friday when the company was slapped by a lawsuit from automotive supplier Futuris against breach of contract. The supplier manufacturers and tests seats for Faraday and claims that it is owed over $10 million and that $7 million of that is in excess of 30 days overdue.
In April, Faraday commenced work for its $1.3 billion in Nevada but in October, it was confirmed that construction on the factory had stalled. At the time, Faraday’s construction firm AECOM revealed that the carmaker was $21 million behind on its September payments and would owe an extra $37 million for October and November.
Only yesterday, it was revealed that the state of Nevada granted Faraday over $300 million in tax credits to build its factory without being aware of its financial circumstances. Speaking with Buzzfeed News, Nevada state treasurer Dan Schwartz said “I truly don’t believe they have any money.”
It seems inevitable that CES 2017 will be make or break for the company. If its pre-production model proves popular and it locks down some orders, the model may hit the market. If not, we could be saying goodbye to the brand for good.
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