"Next Tesla" Challenges Elon Musk's Tesla Again (It's Bold and Ridiculous) - TheStreet

In the Greek legend, Faraday Future, the Californian startup of luxury electric vehicles, would undoubtedly play the role of the phoenix, the mythical bird which always rises from its ashes after its death.

Among the ancient Egyptians, the firm would undoubtedly be Bennu, the firebird which is reborn from the waters where it is stranded to die.

But to automotive fans and electric vehicle lovers, the company instead remains more akin to Sisyphus, a legend with enormous plans condemned to go through the same motions in perpetuity with no end to continual failure.

That may now have changed. The startup, which was celebrated in its early days as the perfect challenger to Tesla, went bankrupt several times and was given up for dead.

But now, after some name adjustments, it has just announced that it has finally managed to produce ... a car.

“Building the first production-intent vehicle at the Hanford [California] plant is an important step towards reaching the start of production in Q3. This iteration is the closest to the FF 91 production model we’ve seen to-date,” said Matt Tall, vice president of manufacturing at FF.

“The FF 91 is expected to be the first ultra-luxury EV to reach the market, with a unique driver and passenger experience.”

The FF 91, a luxury SUV, is the first vehicle from the Tesla rival, which said that passing the pre-production stage allows it to confirm that it is on schedule to start production in the third quarter of 2022.

"The company will build more production-intent vehicles over the coming months for vehicle testing and validation, as well as final certification. Production-intent vehicles feature production-specification components," the company said.

The Price of the FF 91 Is Still Not Known

Before the start of production in the summer Faraday Future will focus on "pre-production builds for final engineering validation and certification."

The startup, which is also called The FF 91 Futurist Alliance, now offers interested consumers to reserve the vehicle online.

Expect to deposit $1,500, which is six times the amount requested by Tesla (TSLA) - Get Tesla Inc Report for its high-end Model X SUV. Other reservation options are planned but were not yet available at the time of this writing.

Faraday Future, which does not give the final price of the FF 91, says that this deposit of $1,500 is refundable.

"We have not announced pricing of the FF 91," a spokesperson told TheStreet by email.

The EV startup presents the FF 91 having a long list of perks, including a roster of tech capabilities.

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"FF 91 Futurist models were designed to deliver the next generation of mobility in luxury, performance, and technology. They are high-performance EVs, with unique Internet, Autonomous, and Intelligence (I.A.I.) technology capabilities that enables the vehicle’s unique third internet living space."

To say that Faraday Future has a checkered history is an understatement.

The startup made a sensational debut on the automotive scene in 2014 by bringing in top talent from Tesla, BMW (BMW) , Audi (VLKAF) , Ford (F) - Get Ford Motor Company Report, Lamborghini, Google (GOOGL) - Get Alphabet Inc. Class A Report and Ferrari (RACE) - Get Ferrari NV Report.

Disrupt the Auto Industry like Apple Did With the Phone

The company does have one additional tech legend footnote: Faraday was at some point mistaken as a secret front operation for Apple's self-driving project.

The fact that the startup, which promised to revolutionize the automobile as Apple (AAPL) - Get Apple Inc. Report had done with the telephone, cultivated secrecy obsessively, contributed to that rumor, until it was widely debunked.

Co-founded and financed by Jia "YT" Yueting, a Chinese millionaire and owner of a media conglomerate in China, Faraday Future has long touted itself as the new center of the automotive industry.

How it will reach that goal has both changed and become more opaque as time goes on.

Complications Arise

First, Faraday Future wanted to develop electric and autonomous vehicles; then the firm wanted to launch a car subscription service; and more recently Faraday Future also wanted to produce the iconic Batmobile.

None of those plans panned out. Plus, there were other substantial obstacles along the way. In 2017, a Shanghai court ordered the seizure of the property of Jia, who now lives in California. A year later, he filed for bankruptcy.

A $1 billion deal was even announced in 2015 for a plant in Nevada, a state that successfully lured Elon Musk's Tesla Gigafactory.

But for Faraday Future, the factory was not to be, and the 913-acre parcel it bought for the project was sold in 2019 for $16.9 million, a sharp markdown from the $40 million the company had originally sought from buyers.

What Is The Future for Faraday Future?

Now, Faraday Future is struggling to find a buyer. The startup was forced to lay off its employees and ask for government assistance, and a new CEO took over the reins in 2020.

In July 2021, Faraday Future merged with special purpose acquisition company, or a SPAC, with Property Solutions Acquisition Corp. that provided the embattled automaker with $1 billion.

Since then, the firm is also called Faraday Future Intelligent Electric.

"Today is a new chapter in FF’s history, and we are thrilled to be a public company with industry leading technology, unrivaled new products, and a world class experienced team to drive the success of FF for years to come,” said Dr. Carsten Breitfeld, FF’s CEO in the press release announcing the merger.

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