Work on Faraday Future’s planned $1 billion vehicle assembly plant in Nevada has been put on indefinite hold, the company confirmed on Monday.
In a statement given to The Nevada Independent, Faraday Future said it’s looking for another means of production that will get its first model, the FF 91, to market faster.
“We are in the process of identifying a manufacturing facility that presents a faster path to start-of-production and aligns with future strategic options,” Faraday Future’s statement read.
The company also said it plans to retain the rights to the site of the proposed Nevada plant so that it will be able to complete the plant at a later date. So far the site has only been cleared and had some sewer infrastructure installed.
The news comes less than a week after a Shanghai court froze $183 million in assets of LeEco boss Jia Yueting due to unpaid loans. LeEco is the Chinese tech giant backing Faraday Future as well as another electric car startup in China. The likely reason behind Yueting’s decision to establish two car startups was to get around capital restrictions. The Chinese government bars the export of cash to a foreign business unless there’s an arm of the business in China.
Yueting last November admitted to a cash crunch at LeEco, which he blamed on too rapid expansion. The revelation came a month after it was revealed that Faraday Future was behind in payments to the construction firm responsible for the Nevada plant.
In addition to seeking a new manufacturing solution, Faraday Future is also attempting to raise funds. It was reported in May that the company was seeking as much as $1 billion in new funds.
