Faraday Future says it plans to open a factory in China by the middle of the decade – TechCrunch

Faraday Future said Wednesday during an investor presentation that it plans to open a factory in China as early as 2025, even as it faces capital shortages and an investigation. of the SEC.

The electric vehicle maker said it is looking for locations to build its future vehicles and serve as its local headquarters for the Chinese market, according to an SEC filing Wednesday. While Faraday has previously mentioned plans to expand to China, this is the first time the company has provided few details.

Faraday’s announcement comes as the country thrives as an important market for electric vehicle makers, but at a precarious time for troubled EV manufacturers.

Expanding into China sounds overly ambitious as the company struggles to launch its long-delayed first model, the 1,050-horsepower FF 91, while burning cash with little prospect. generate revenue in the short term. Jia Yueting, the company’s Chinese founder, who was forced to Resign as CEO in April, has had limited power in China since refusing to return to face financial fraud charges.

CEO Carston Breitfeld warned in May that the company was running out of money. At the time, he also said, the company plans to deliver the first FF 91s to customers in the third quarter of 2022. Their 1.1 million square foot factory in Hanford, California, is expected ​will open in July and will eventually go into operation. Produce 10,000 vehicles a year, he added.

According to SEC filings, Faraday has about 90% of the equipment needed to build the vehicle, including facial recognition technology, three 5G modems and nearly a dozen screens.

Meanwhile, it was nearly delisted by Nasdaq in May by filing the annual report for 2021 is overdue and financial results for the first quarter of 2022. However, the results showed growing losses and lack of capital to build the second vehicle, the FF 81 sedan designed for the mass market.

The China site will build the FF 81 as well as the company’s third model, the FF 71 smart last-mile delivery vehicle.

According to Faraday, a presence in China will help the company cut costs, lead time and supply chain complexity, and build and customize vehicles quickly for the local market. The company said in the filing that “deep cultural roots in both the United States and China provide a competitive advantage across two of the largest electric vehicle markets.”

The company also announced in February an agreement with South Korean manufacturer Myoung Shin to build the FF 81 at a former GM plant in Gunsan, South Korea starting in 2024.

Faraday Future was not immediately available for comment late Wednesday.

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