Faraday Future has delayed the production of its flagship electric vehicle FF91. The reason behind the delay is the lack of funds and issues with supply chain based on a regulatory filing filed by the company.
With this, the delivery of the FF 91 EV in the US should now be expected in the third or fourth quarter of 2022, as reported by TechCrunch.
The Lack of Funds
With the lack of funds, it may likely derail the EV altogether. Based on the filing, the company is trying to raise additional capital to help fund operations through the end of the year.
An excerpt from the filing reads, "Any challenges in supplier engagements, delays in ramping capacity or labor at the company's Hanford, California manufacturing facility or for sales and service engagements, rising prices of materials, or ongoing global supply chain disruptions may further increase the need for additional capital to launch the FF 91 series."
The company also stated that aside from the EV, they need the capital to fund operations, research, development, and design efforts for future vehicles.
Also Read: Tesla vs Faraday Future: Should Elon Musk Be Worried?
Challenge After Challenge
It seems that the company is going through difficulties since it was founded in 2014. But in January 2016, the company unveiled the FFZero1, a single-seat electric vehicle concept vehicle with a futuristic design. However, it never materialized into a real product.
Aside from that, Faraday Future also were subjected to several controversies after they become a publicly traded company in July 2021 via a merger with Property Solutions Acquisition Corp. A few months after the public debut, a report by J Capital alleged that the company made a number of inaccurate statements.
Following that, the company had to go through an internal review by a special committee of directors that was supported by a forensic accounting firm and independent legal counsel. With that, the company had to revamp its board, cut the pay of two top executives, and suspend at least one other.
After that, the internal investigation was able to determine that employees made inaccurate statements to investors and the US Securities and Exchange Commission subpoenaed a few executives.
The US Department of Justice also requested information related to the SEC probe.
The Rising Costs in EV Production
It is not only Faraday Future that is dealing with the rising costs and supply chain issues with EV production. There are a few auto manufacturers that are going through the same thing, including Tesla.
Deloitte analysts said that the automotive supply is facing disruption due to material shortages and logistic costs. They advise that auto companies view the supply chain differently.
This article is owned by TechTimes
Written by April Fowell
