Published: Thu, August 10, 2017
Research | By Jennifer Evans

Faraday Future moves into leased manufacturing facility

Faraday Future moves into leased manufacturing facility

Struggling electric auto startup Faraday & Future Inc. plans to use the former Pirelli Tire factory in Hanford for its first production vehicle, due in 2018, pivoting from an earlier plan to build a $1 billion site from scratch in Nevada.

The fact that the company will move into an existing factory will save some costs, compared to its previous plan of building a brand new factory from the ground up in Nevada.

Torrance-based electric auto maker Faraday Future has inked a deal on a 1 million-square-foot manufacturing facility in the Central Valley, the company announced Monday.

Faraday Future plans to get back on track by using the already-built facility in California-previously occupied by tire-manufacturer Pirelli-while scaling back some of its more ambitious goals.

"We know there is a lot of work and risks ahead, but this event represents a major step forward for the company", said Stefan Krause, COO/CFO, Faraday Future.

The company, whose backers include the head of the financially strapped Chinese tech group LeEco, said its new facility will be in Hanford, California, roughly halfway between Los Angeles and Silicon Valley. A company press release said, "Following the move-out of current tenants in late November, the company expects significant movement to ramp-up on site in early 2018".

CHECK OUT: Faraday Future FF 91 electric vehicle to cost nearly $300,000? The building has been mostly empty since. The company wants to start selling its first vehicle, the luxury FF 91, by the end of 2018.

The Wall Street Journal reported last week that Faraday had pledged its corporate headquarters as collateral after receiving a $14 million rescue loan from NY investment firm Innovatus Capital Partners. The FF91 is an electric autonomous vehicle aimed to take on the likes of Tesla Model X. It also did an impressive run at the 2017 Pikes Peaks Hill Climb.

The manufacturing facility is a million square feet, "and will employ up to 1,300 workers, over three shifts, over time", the company added.

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