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Faraday Future Embraces Chinese Manufacturer For Cheaper EV Brand
Financially troubled Faraday Future has made a smaller loss in the first quarter than in the same period last year, but it is still spending tens of millions of euros more than it is earning. This is the perfect moment to expand your portfolio with a completely new car brand, or so Faraday Future seems to think.
Start-up Faraday Future profiled itself a few years ago as the messiah of the automotive world, but it never lived up to its high expectations. The company has not yet made a cent in profit, and the market introduction of its first car, the FF 91, did not go smoothly. The first copies of the EV costing hundreds of thousands have already been delivered, and the arrival of a second model, the FF 92, has already been announced. The red figures on the balance sheet remain bright red. Faraday Future reports that it made a considerably lower loss in the first quarter of this year than in the same quarter last year. That is correct, but it still caused a loss of tens of millions of euros. What do you do then? Exactly: You announce a new brand.
Faraday Future says it wants to embrace a Chinese car manufacturer to start a new brand. The car brand Faraday Future would remain positioned high in the market, and the as-yet-unnamed new second brand should become a volume brand. It is not yet known which Chinese car manufacturer Faraday Future will do business with. It does say that it has already had discussions with various Chinese car manufacturers. According to Faraday Future, the new brand should also help ‘build a bridge between the American and Chinese car industries’. Go ahead.
