Faraday Future said during an investor presentation Wednesday that it plans to open a factory in China as early as 2025, even as it faces a shortage of capital and an SEC investigation.
The electric vehicle manufacturer said it is exploring sites for a site to build its future vehicles and serve as a local headquarters for the Chinese market, according to an SEC filing on Wednesday. While Faraday previously mentioned plans to expand into China, this is the first time the company has provided a few crumbs of detail.
Faraday’s announcement comes as the country is thriving as a major market for EV manufacturers, but at a precarious time for the beleaguered EV maker.
Expanding into China may sound overly ambitious, given the company’s struggles to launch its long-delayed first model, the 1,050-horsepower FF 91, while consuming cash with little near-term prospects to generate revenue. Jia Yueting, the company’s Chinese founder who was forced to resign as CEO in April, has limited powers in China since he refused to return to face charges of financial fraud.
CEO Carston Breitfeld warned in May that the company was out of money. He also said at the time that the company plans to ship the first FF 91s to customers in the third quarter of 2022. The 1.1 million-square-foot plant in Hanford, California, is expected to open in July and will eventually grow to produce 10,000 vehicles per year, he added.
According to the SEC filing, Faraday has about 90% of the equipment needed to build the car, which includes facial recognition technology, three 5G modems and nearly a dozen screens.
Meanwhile, it narrowly avoided a May delisting of the Nasdaq by submitting its overdue 2021 annual report and first quarter 2022 financial results. Still, the results showed mounting losses and a lack of funds to build its 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 truck.
A presence in China will help the company reduce costs, lead times and supply chain complexity, as well as quickly build and adapt vehicles for the local market, Faraday said. The company said in the filing that “deep cultural roots in both the US and China provide a competitive advantage in two of the largest EV 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, from 2024.
Faraday Future was not immediately available for comment late Wednesday.