Faraday begins trading, aims for launch of high-end crossover vehicle

MS AUTOTECH

22/07/2021 14:30

By Ben Klayman
    DETROIT, July 22 (Reuters) - Electric carmaker Faraday
Future  FFIE.O  on Thursday officially begins life as a publicly
traded stock after shareholders of the blank-check money it
merged with approved the deal, and the chief executive has a
product roadmap that includes a South Korean manufacturing
partner.
    Faraday closed its merger with Property Solutions
Acquisition Corp  PSAC.O  on Wednesday, giving the Los
Angeles-based EV maker about $1 billion in proceeds to fund the
rollout of the FF 91 crossover from its Hanford, California,
plant in a year, Carsten Breitfeld told Reuters in an interview.
    The FF 91, starting with the premium model priced above
$200,000, will launch at small volumes to ensure high quality
and establish the Faraday brand before it begins moving down
into higher-volume segments, he said.
    "Our strategy starting from the top as a halo product is not
only the right way to define a premium brand, but it puts us in
a very safe position to launch at high quality at the
beginning," said Breitfeld, a former BMW  BMWG.DE  executive who
also co-founded Chinese EV startup Byton before leaving in early
2019.
    Faraday, which agreed to be taken public by the
special-purpose acquisition company in January, initially
planned to launch its FF 91 car in 2019. However, it faced
multiple production delays owing to financing issues.
 urn:newsml:reuters.com:*:nL4N2K32V3
    Once one of the more hyped EV startups, Faraday burned
through $2 billion in cash and its founder Jia Yueting finalized
his personal bankruptcy filing last year.
    The FF 91, which will compete with Maybach, Bentley and
Rolls Royce, will launch with plans to build only 300 of the
premium Futurist Alliance model before offering a less costly
version at slightly higher volumes, Breitfeld said. The Hanford
plant will start with an annual capacity of 10,000 vehicles and
the ability to expand to 30,000 with modest investment.
    The vehicle will initially be sold in the U.S. market,
followed by China five months later and eventually Europe, he
said. Battery cells for the vehicle will initially be supplied
by LG Chem's  051910.KS  LG Energy Solution unit.
    Thirty months from now, Faraday will launch the FF 81, a
smaller crossover built on the same platform by the company's
contract manufacturer in South Korea, MS Auto Tech 123040.KQ , 
Breitfeld said. The FF 81 will start at over $70,000, and
compete with Tesla's  TSLA.O  Model S and Model X vehicles.
    Faraday will have the option to build up to 270,000 vehicles
annually at the Korean plant, he said.
    Faraday has not closed a deal yet for China's Geely
 GEELY.UL  to be the startup's contract manufacturer in that
market, Breitfeld said. The more mainstream FF 71, starting at
around $45,000 and built on a different platform, is planned for
early 2025.  urn:newsml:reuters.com:*:nL8N2K40CV  

 (Reporting by Ben Klayman in Detroit; editing by David Evans)
 ((benjamin.klayman@thomsonreuters.com; 313-600-2277; Reuters
Messaging: benjamin.klayman.thomsonreuters.com@reuters.net))