Troubled EV startup Faraday Future prices FF 91 crossover at $309,000

Electric vehicle startup Faraday Future said the first production vehicles of its FF 91 2.0 Futurist Alliance crossover will start at $309,000 before shipping and compete at the high-end of the market with Ferrari, Rolls-Royce and the Maybach line from Mercedes-Benz.

Faraday Future Intelligent Electric Inc. in Los Angeles, which has struggled to secure financing, said Tuesday it is taking preorders for the FF 91 launch edition secured by a refundable $5,000 deposit. The Alliance trim will be limited to 300, the company said.

Faraday describes the FF 91 as the combination of hypercar, sedan and SUV. The launch edition, however, will lack air suspension typical for high-end vehicles. The FF 91 will initially be sold in the U.S. and China markets, the company said.

"In March of this year, the start of production began for the FF 91 Futurist Alliance," said Global CEO Xuefeng Chen during a nearly two-hour presentation Tuesday. "After two weeks, our first production vehicle was assembled and rolled off the line at our FF factory in California."

The FF 91 has three electric motors generating 1,050 hp, the automaker said. Acceleration to 60 mph is estimated at 2.3 seconds. The EV's battery pack is rated at 143 kilowatt-hours, giving the crossover of range of 381 miles on the EPA testing cycle, Faraday said.

Key interior features include a 27-inch rear display for streaming video, three 5G cellular modems for improved bandwidth and multiple driver-facing displays in the front of the cabin. Vehicle software makes extensive use of artificial intelligence, Faraday said.

The startup is marketing the FF 91 as a high-end alternative to more established ultra-luxury automakers. Target competitor vehicles, Faraday said, include the Ferrari SF90 Stradale, a plug-in hybrid supercar; the Rolls-Royce Spectre, an electric coupe; and the Mercedes-Maybach EQS SUV.

The FF 91's start of production comes after funding struggles, boardroom drama and regulatory scrutiny over the past year.

Faraday said in May that it was raising $100 million in debt to support FF 91 production along with sales and service operations. The startup has repeatedly delayed its launch due to funding issues and warned last year about its ability to continue as a "going concern."

The company was founded in 2014 by Chinese businessman Jia Yueting, and the first version of the FF 91 was shown to the public in 2017.

The automaker was listed on the Nasdaq in 2021. Shares on Wednesday were down about 3 percent to 24 cents. In the past 12 months, the stock price has fallen 93 percent.

Bloomberg reported that Faraday has burned through more than $3 billion since the company was founded.

"After nine years of perseverance, we have finally come to the moment for disruption," said Yueting, also known as YT, during Tuesday's presentation. "The production of the FF 91 is underway, and we are entering the delivery phase."

Faraday also will offer a less-expensive version of the crossover, the FF 91 2.0 Futurist, at $249,000 before shipping. Included in the price is a $1,000 public charging credit at participating charging networks, Faraday said.

The price tag, analysts say, could limit the market for the FF 91 and for a startup on shaky financial ground.

"It's wild to think that it's taken Faraday Future nearly a decade to get their first vehicle ready for prime time," said Robby DeGraff, product and consumer insights analyst at AutoPacific.

"While its big range, purported performance and design are all intriguing, its price tag is pure sticker shock. A startup unfortunately plagued by delays asking $250,000 to $309,000 for its first product is a dicey move, and any lingering consumer skepticism of FF may be sticking around a bit longer," DeGraff said.

The automaker is offering a connected-car subscription for $14,900 a year. In the future, Faraday said it will offer an Internet package using satellite communication.

Faraday said its first vehicle deliveries would go to "our industry expert Futurist Product Officers" who will be given "the first chance to pay in full to reserve and experience the innovative FF 91."

A Faraday spokesperson didn't respond to questions about how the first group of buyers will qualify as "industry expert FPOs," as outlined in presentation materials. A Faraday press release said the company would qualify the group prior to inviting them to purchase a car "on a first-come, first-served basis."

Separately, Faraday said delivery volume this year will depend on its production ramp-up. In the future, the company said it hopes to scale in size to match niche automakers such as Rolls-Royce or Bentley.

"We believe the FF 91 2.0, being so unique and revolutionary, could one day become a leader in this ultra-luxury market segment," the company said.