Last week, we wrote (again) about Faraday Future and its ongoing cash struggles. As if things weren't bad enough for the Chinese start-up, the situation has been worsened by the Chinese government, which recently froze $2.5 billion in assets held by founder Jia Yueting, his wife, and subsidiaries of Yueting's LeEco corporation.
Faraday is in the midst of a serious cash crunch, and the frozen funds were crucial for paying bills and leveraging loans. Now that it's out of reach, Faraday is having to head back to the drawing board (again).
Faraday isn't shutting down operations--at least not yet. But after years of spending money like there was no tomorrow and promising vehicles on timetables it couldn't possibly meet, it appears that Faraday has finally gotten level-headed about its future.
The would-be automaker has issued a statement confirming that it has indefinitely postponed development of its $1 billion manufacturing facility outside Las Vegas, Nevada. (If you follow auto news at all, that won't come as much of a surprise, since construction at the site has been on hold since last fall, when Faraday stopped paying its contractors.)
So, what's Faraday's next big move? How will it stay in business?
It's going to do what it probably should've done in the first place and work with a partner--possibly an automaker, and ideally one that has some untapped production capacity at one of its plants. In its statement, Faraday said: "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."
There's no word yet on which companies Faraday might be courting, or where in the world they might be located. However, Faraday says that it will maintain the rights to its Nevada property and still intends to build there someday. If it does, it'll need to spend at least $1 billion at the site to earn the significant tax credits that Nevada offered to lure Faraday there in early 2016.
For more on this very messy situation, check out our colleagues at Motor Authority.