Back in 1908, when the automobile was still a new invention, there were 253 active automakers in the U.S. A number that dropped by 80-percent by 1929, to 44. With electrification ever more present, a similar phenomenon seems to be happening in the EV industry. We all know Tesla, that arguably started ahead to tackle the EV market, and has been reaping the rewards of being a first mover. Even considering some real struggles it had in the past, before being able to grab a strong foothold in the market. It’s exciting to see several EV companies arising. Just as well, as seeing what EVs legacy car manufacturers are coming up with. But if history is any guide, some, if not most new EV companies, won’t survive long in this competitive market. All eyes are on them, and it makes for some good speculative discussions. One EV carmaker that, like Tesla, and many others, had to endure tough times to get where it’s at is California-based Faraday Future.
The Faraday Future luxury EV SUV, the FF91 is about to enter production in March this year. Faraday’s stock had a terrible 2022 as it plummeted more than 90-percent. The company seemed doomed for failure, and to join the ranks of Nikola, Dyson EV, and Aperta, among others. FF first claimed it would begin production sometime back in 2018, after all. You could say they had a few tough years. Some of these challenges were the loss of some executives for other EV startups, and continuing to raise funds to keep the business alive for all this time.
Despite Financial Woes, There Seems To Finally Be Hope For Faraday Future
The company reported quarterly losses in the low hundreds of million dollars throughout 2022. This all culminated at the end of 2022. FF Top Holding, a major shareholder of Faraday Future executed a Term Sheet for up to $600 million Investment in August. A month later, in September, FF Top Holding was suing Faraday Future claiming disputes at the board. The Holding wanted to remove two members of the board, and replace them with others more engaged with moving the company forward. It is claimed one of the board members in particular, Susan Swenson, was pushing for the company to declare bankruptcy, and restructuring. The litigation was successful, and the board members FF Top Holding wanted out were replaced.
But there is good news on the eastern front. In January 2023, Faraday Future announced an agreement with the City of Huanggang in Hubei Province, China. This agreement is part of a dual home market strategy. Faraday Future will move its future China headquarters to Huanggang, which will support this dual DNA strategy. The agreement encompasses sharing technology, policy, financial, and infrastructure support for FF headquarters in China. FF will still maintain its global headquarters in California, but this strategy can give them access to cheaper parts from China, which in turn could improve its margins here in the U.S. It’s important to notice that “Made in China” doesn’t mean low quality. Take some of Apple’s products for example. “Designed in California, Assembled in China.”. As long as there are standards to be met, proper training, and accountability for failure to achieve said standards, the FF91 luxury EV SUV should be fine. And it's looking good so far.
The FF91 Flaunts An Impeccable Futuristic Design
The design of the FF91 is impressive, and futuristic. The EV is supposed to come with some equally impressive features. The FF91 is FF's first production vehicle, and it's also its flagship. It needs to win over a good customer base to allow for the company's expansion. Not unlike the strategy Tesla used, by first offering the market low production, high margin vehicles, and moving down the line all the way to the Model 3. The FF91 Variable Platform Architecture (VPA) is highly modular, and could serve as the basis for other FF models in the future.
Providing an outstanding balance of performance, and range, the FF91 will have three electric motors, outputting a total of 1,050 horsepower. The range is claimed to be 381 miles per charge. FF says their lithium-ion battery cells have the world’s largest energy density. But the range is also helped by the design’s low drag coefficient and Pirelli’s low-resistance tires. 0-60 mph should take 2.39 seconds. The car is also autonomous-ready. The interior is luxurious. On par with the best high-end EV SUVs on the market today. Being a luxury vehicle that can be driven by a chauffeur, or even itself soon, FF made sure to make the backseat passengers feel at home. The rear seats feature Nasa’s design philosophy. They simulate the natural human body zero gravity posture, enabling ideal distribution of your body weight.
Faraday Future As A Household Name
Faraday Future is capitalizing a lot on the brand name, which is displayed clearly on the sides, and back of the car. The Faraday logo may not be widely recognizable yet, but it is visible through led illumination throughout the exterior of the car. Once it is known, it will be easy to spot one on the road when you see it. FF is also promising a personalized experience. Each user will have a unique FF ID, and the more you use the car, the more it learns about your preferences. It will even greet you before you even enter the car. These are features future competitors such as the Sony and Honda's Afeela are also supposed to have. FF’s product seems to be really good, and hit all the right chords. What remains to be seen is if the endless delays, and near bankruptcy of the company won’t get in the way of this great SUV it's going to put on the market this year. Let’s wait, and see.