[Upper5Percent]

http://www.cnbc.com/2017/07/11/electric-car-maker-faraday-future-ditches-1-billion-nevada-plant.html?recirc=taboolainternal


Faraday Future's CFO invested more than $120 million into the Nevada plant.

The car maker halted work in November, calling the stoppage a "temporary adjustment" at the time.

A Shanghai court recently froze more than $180 million in assets belonging to one of the company's biggest backers.

 

[Raymondjram]

Any startup is risky, especially for electric vehicles. If Elon Musk started Tesla Motors today, he would be in very deep trouble. Even small startups have problems. Only the few that will supply vehicles for fleet purchases, such as Via Motors, Workhorse, and other electric trucks, will have a better opportunity than just a car maker. See how troublesome it was for GM to get the Chevy Volt out, yet it is now the best selling electric after seven years. And it took GM two years to develop and sell the first Chevy Bolt EV.

So only large manufacturers that have the funds and experience can have an internal startup of an electric vehicle and initially lose money but compensate with the other ICE sales until the EV can stand by itself, as the Chevy Volt has done in its second generation.

 

[rmay635703]

I thought faraday was out of business already last year.

Surprised they even got that far.

 

[Powered7]

The article says that Faraday Future is looking to buy a facility that they can use for manufacturing. That will be the cheaper route for the short term at least.

I saw their presentation earlier this year and am looking forward to test driving one of their cars. They're on the right track in that they're dedicated to only developing 100% electric vehicles. I really hope they do well!

 

[obermd]

Having the assets of one of your biggest backers frozen can put a lot of cramp in new development. Doesn't matter what the project is.