Faraday Future vs Lucid Motors Two increasingly Parallel and Worrying Stories
By: Fedora Atjeh | September 24, 2017
The business world has been crazy lately. Where before there was little more than a vacant lot now there is an ultra-modern start up with a buoyant upward price and a market value of hundreds of millions. As they say "everything that goes up, down", or at least it does in most cases, and automotive companies are not alien to this popular wisdom.
If for months we have talked about how uncertain are the adventures and misadventures of Faraday Future, now we are increasingly clear that the rapid growth of its LeEco matrix leaves more shadows than lights. The aggressive growth strategy of the Chinese company has led them to overflow beyond any geopolitical frontier and now, both Faraday Future and LeEco, could be prey to this growth craving. And they are not the only ones.
From mobile to television, cloud services and, of course, a car that has given to talk long and hard. Although we had many doubts, the Faraday Future FF91 ended up getting on the scene, yes. It is true that he did it in a presentation in which things failed and the demonstrations were not really impressive, but was finally introduced in society.
It is also true that of that presentation jumped another pufo of two million dollars in defaults to the company in charge of the special effects. A visual display that by the way could not cover the embarrassment of the megalomaniac Jia Yueting before the failures in its mega-luxury superSUV.
Beyond the good (or not so good, we do not know) that can be the car, the truth is that the diversifying greed of LeEco has placed in a situation that we could almost call crisis. Acquisition after acquisition, LeEco has run out of money to pay for running costs and, to curl the loop, the Chinese government would not allow them to take their money out of the People's Republic.
LeEco has created companies, open divisions, started countless projects and hired a huge amount of staff. All these expenses could be prematurely choking the Asian multinational before even having the possibility to collect profits.
Without cash in the bank employees do not charge when they have to collect and are already considering the reduction of a third of all the staff they have contracted in the United States. At the same time, suppliers are suffering from defaults, something we have seen repeatedly with Faraday Future, the shutdown of the mega-factory works for non-payment to the contractor or the $ 10 million debt with Futuris, the company that makes the seats of a car that has not even begun to be manufactured.
With a total power of its electric motors that ascends up to 1,050 CV, 608 km of autonomy and a price yet to determine, much interest has to wake up if it wants to become a viable project. No longer does it just try to unseat the Tesla Model S at a technical level, Faraday Future has to actually turn a car that still leaves many doubts in a financially hostile environment.
So complicated is the thing for Faraday Future that to move forward the manufacturing process of its promising electric would be considering the sale of the building where they planned to build their factory at a price of 260 million dollars. Meanwhile, they continue to resign from management.
Lucid Motors and a story that begins to sound repetitive
If Faraday Future smells like burned rubber, Lucid Motors does not go too far. It seemed that the Lucid Air project had a more settled bases than its compatriots, but by what it begins to transcend could be following the same way.
Its intention is also to manufacture a luxury car with an enormous power of 1,000 hp through a pure electric motorization and an autonomy over 600 km. Bigger words wrapped in a large saloon body with coupé airs and a very futuristic design full of premium finishes and technology in the interior.
Lucid Motors, the company in charge of developing the project burst as fast as the FF91, in start up mode, and now have recognized that they need more time and money to finally bring their Air to market. Initially they estimated that they could have it on sale at the end of 2018, but have already taken a first delay to some date to be determined in 2019.
Peter Rawlinson in a statement to Automotive News confessed that before continuing to move forward they need Lucid to ensure the last phase of funding to not walk on quicksand. "For the moment we do not have enough money, that's why we need capital to ensure production, otherwise it would be irresponsible," said the manager.
Continuing with the similarities and aromas to raruno, Lucid Motors is also preparing the acquisition of a plot to install its factory valued at 700 million dollars and located in the state of Arizona. Does it ring you?
In case the reasonable resemblances were not enough, in the template of Lucid that is carrying out the design of the Air, a few Tesla ex, many of the engineers responsible for what the Tesla Model S is today, such as own Rawlinson.
The objective of Lucid Motors, like that of Faraday Future, is obvious: make the plane to Tesla. A car of cut and autonomy similar to the Model S but for a price (estimated) cheaper that will start approximately of 52,500 dollars for the versions of access and that will surpass the 100,000 dollars in the versions more expensive and performance.
Both companies have many parallels, including that they only need to reach the market and start to realize all the wonders they promise us.