Tata Motors India’s leading vehicle manufacturer and owner of Jaguar LandRover has reportedly invested 900Million dollars(5850 Crore) in an American startup company focussed on the development of smart electric cars. Faraday Future is based in Los Angeles California started in the year 2014 with around 1000 employees working for them. Presently headed by Jia Yueting, it’s unclear who is the current CEO of the company.

Tata Motors has so far had a good charm with converting the very profitable now Jaguar LandRover from the bankrupted and is thought as the best moveTata Motors Tata Motors has ever made. Tata Motors decision of investing in Faraday Future could prove a very bad investment in regards to the recent developments happening with respect to Faraday Future.

First of all i wouldn’t even say this as a fair comparison, comparing Jaguar LandRover with Faraday Future. Jaguar LandRover -An established Automaker with a history of making the best in Class Cars versus An Electric Car Company that has repeatedly failed to demonstrate even a single viable production vehicle with reliable plans.

Faraday Future
Faraday Future at CES 2016: Failed demonstration of the vehicle.

So whats wrong with Faraday Future that is not so satisfying:

  • Faraday Future has a lot of mystery with respect to the Person Incharge or the person who guides the vision of the company. The current global CEO   Ding Lei(Co-Founder of LeEco) parent company of  LeTv(Netflix of China), runs a parallel project in China with the name LeSEE claiming to be an autonomous Electric Vehicle close to the production version.  Both of the projects- LeSEE and Faraday Future share similar traits and features as many employees at Faraday Future report that some part of the development for LeSEE was happening at Faraday Future. Not a fair way of running proxy companies by luring investors from different countries.
  • Faraday Future claims to have Filed more than 2000 Patents and received about 250 patents. We all know patents are the bone of the company, but according to the report from Verge, Faraday Future doesn’t own its Intellectual Property and is instead owned by a separate entity called FF Cayman Global. Thus making it very unlikely for investors to bank on them with a complex corporate structure.
  • Faraday Future had the capacity to hire the best talent, and was filled with people from coming fromTesla, JLR, and other top companies is now a diminishing hope. Top executives are reportedly leaving the company saying there is not much hope left, and the persons still working are finding it difficult to make executives from China understand the market in the United States.
  • Faraday Future has stopped its construction and permanently stopped building of its Nevada Factory due to lack of Funds.
  • Faraday Future boasts of its FF91 vehicle, which is claimed to have the most comprehensive sensor system on paper. The company claims large about the features but how close they are to the production systems it’s very unclear.
  • Faraday Future has no operational factory to produce batteries or their vehicles. The battery technology department was headed by Porter Harris who is the renowned name in the Battery Industry left the company.

With competition heating up in this segment it’s very unlikely that Faraday will be able to strategize its vehicle at a price competitive with Tesla’s Model S. Even if they manage to bring a vehicle in market, they will be up against fierce competitors who have already speedup their developments in this segment and are promising only electric cars from 2020. It’s very early to say how Faraday Future was able to manage Investments from Tata Motors who are very particular in evaluating these decisions, whatever the reason if the speculation is true Its a Risk-like no other.

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