Faraday Future announced yesterday its acquisition of a factory in Hanford, California. The company also revealed they plan to build 10,000 cars per year through the newly acquired plant. Does the low output hint on a high price tag of the upcoming electric vehicle?
The Tesla competitor leased a huge old factory in Hanford, in Central Valley. The facility measures 1 million square-feet. Pirelli used to produce tires in the said plant. Then various entities replaced the tire company.
This announcement confirms that the company will not really proceed its production in Nevada. A few weeks ago, FF also announced they are putting on hold the $1 billion investment that was supposed to be allocated for a new factory near Las Vegas.
The American start-up technology company assigned one-third of its 1,000 employees to begin cleaning up the newly acquired factory. The company's vice president of manufacturing, Dag Reckhorn, led the clean-up session yesterday.
Reckhorn is a veteran from Tesla. He is now expected to convert the Hanford facility to be the home of the upcoming FF 91.
The vice president told USA Today that the Hanford factory offers a majority of the company's requirements. It has gas, water, space, power and a rail line. He emphasized that these features are essential in the start-up facility.
Reckhorn also revealed they were able to get a good deal from the landlord. Faraday Future can already access the plant without shelling out any rent. The latter graciously allowed the company to begin paying rent by early 2018.
FF will now prioritize the improvements of the factory. They also need to guarantee the environmental safety measures of the facility prior to the start of operations.
10,000 Cars Per Year Hint Of A Higher Price Tag?
The vice president also mentioned they are targeting to build around 10,000 cars per year through the Hanford plant. This output is relatively low compared to Tesla's current output of 100,000 units of combined Model S and X.
The goal of a small production run seems to project the company's focus is not on quantity. This also suggests that the upcoming electric vehicle of FF might come out with a high price tag.
The publication noted that the cost of the prototype of Faraday Future's upcoming model with reclining rear seats is similar to Lucid Motor's upcoming model, which is about $160,000. The final FF 91 that promises 1,000 hp would most likely launch with a higher price.
Meanwhile, MarketWatch claims a source revealed that Faraday Future made its headquarters as a loan collateral. The company allegedly borrowed $14 million from a New York investment firm, Innovatus Capital Partners LLC. The latter turns out to be the replacement of Chinese billionaire Jia Yueting, who is currently facing financial issues.