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Will Faraday Future’s FF 91 ever see production without a factory?
Faraday Future finally took the wraps off its planned production car, named FF 91, last night at CES 2017. What the public finally saw was a low slung, four passenger crossover style vehicle that is intended to compete with the Tesla Model X.
The California-based electric car startup says the car will utilize an industry leading 130 kWh battery that’s capable of driving 378 miles on a single charge. Powered by three electric motors — one in front and two at the rear — FF 91’s all wheel drive system will be capable of blasting off a 0-60 mph time of 2.39 seconds, making it the world’s quickest electric vehicle.
The battery, which Faraday Future claims has the highest energy density in the industry, is supplied by LG Chem. Pete Savagian, vice president of propulsion engineering at Faraday, says the FF 91 is equipped for 200 kW fast charging and can charge at a rate of 500 miles per hour.
The rear doors are hinged at the rear to provide ease of access to the interior. The doors are fitted with radar sensors that protect them from damage from cars or objects parked nearby. Those sensors also are part of the advanced self-driving system built into the car. Rear seating is said to be spacious and sumptuous.
Those are the specs but specs don’t sell cars. People buy on emotion and justify their decision later with facts. The FF 91 is an emotional car in a way that the equally capable Lucid Air is not. The Lucid sedan looks like a very nice Audi. That’s not a bad thing; it just means it doesn’t have a lot of visual excitement. No car appeals to every taste, of course, but the FF 91 does have curb appeal. It is visually attractive and mimics the body lines of BMW’s i3 and i8 — thoroughly modern without being too bizarre.
Richard Kim, Faraday Future’s head of design, says much of the car was designed using virtual reality technology. “If you want to have the most progressive, forward thinking vehicle design, you have to have use the most progressive and forward thinking methodologies,” Kim told Automotive News during a tour of the company’s headquarters in Gardena, California late last year.
Faraday Future says owners will be assigned an FFID — a personal identification code that will allow any Faraday Future car to configure itself to the personal preferences of the owner. That raises a significant point. Will there ever be enough Faraday Future cars on the road to make FFID relevant? The company is said to have serious financial difficulties. Work on its factory in North Las Vegas has been shut down for almost two months and senior company executives have left the company in the past few weeks.
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Not to worry, Nick Sampson, senior vice president of R&D and engineering, told the audience Tuesday night in Las Vegas. Brimming with confidence, he assured those in attendance that Faraday Future is in the middle of a “multifaceted disruption” that will “reformat the auto industry.” Then he added, “Despite all the naysayers and the skeptics, we will persist,” before adding that the company’s “clean sheet” gives it an advantage over traditional automakers. Maybe so. But with the first cars scheduled to be delivered in 2018 and no factory yet in existence, there are plenty of skeptics.
Are Faraday Future and the FF 91 ready for prime time? Interested parties can reserve a car now or pay a $5,000 fee to secure a “priority reservation” for one of 300 “Alliance Edition” cars. With the company teetering on the edge of financial collapse, the CES reveal is seen by many as a Hail Mary event. If the reaction to the FF 91 is positive, new investors may be brought on board. But without fresh funds, it is hard to see how the company can survive long enough to be part of CES 2018.
In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
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Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
SpaceX’s massive investment in AI will make it a big winner, Argus Research said after the company’s successful earnings call last week.
The firm also upgraded shares to a Buy from Hold and set a $160 price target.
SpaceX (NASDAQ: SPCX) is currently recovering from its heavy AI infrastructure investments, as it spent nearly $16 billion in Q2 alone. The company did this primarily by monetizing high-demand GPU compute capacity at a much faster pace than traditional data center economics would suggest.
Company CFO Bret Johnsen said that SpaceX would be able to pay back anything on new deployments within a year.
There are plenty of ways the company can do this:
Leasing excess compute capacity through contracts
SpaceX has already built Colossus and Colossus II, largely for its own model training. However, much of that capacity is already rented out to third parties. It already has major deals with Anthropic, Google, and Reflection AI. These partnerships are adding billions per month to SpaceX’s spreadsheet.
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High utilization driven by industry-wide scarcity
The demand for advanced AI training and inference capacity continues to exceed what is available for use. SpaceX can fill new racks quickly after they come online, so the capital deployed converts into revenue with minimal idle time.
Additionally, management and outside observers have described the new compute capital as behaving more like a cost-of-goods-sold than traditional multi-year capex, especially because of this rapid monetization pattern.
Capacity has already scaled from ~0.4 GW a year to 1.4 GW annually by the end of Q2. There are targets of more than 2 GW by year-end.
High incremental margins on the rental business once capacity is online
GPU cloud providers often operate at strong gross margins. SpaceX can monetize capacity that was already partially built or can be added efficiently. This means that incremental EBITDA margins on the rental revenue are usually high. This accelerates cash recovery relative to the gross capital outlay.
Parallel monetization of its own AI software and applications
Beyond pure infrastructure rental, SpaceX also generates revenue from Grok through subscriptions and usage, from X through ads, data, and other related services, enterprise APIs, and the planned integration of the Cursor coding tools acquisition.
These application layers ride on the same compute infrastructure and provide additional high-margin streams that could offset build-out costs. AI-segment revenue overall rose sharply to about $2.6 billion in Q2, according to Motley Fool. This was driven primarily by the infrastructure contracts, but the software side is also partially responsible.
Efficient, large-scale deployment and vertical integration advantages
SpaceX has emphasized the rapid construction of power and cooling infrastructure and favorable cost-per-megawatt economics relative to industry benchmarks in some disclosures.
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Combined with its ability to scale capacity aggressively and the fact that many contracts start generating revenue within months of capacity coming online, the effective payback compresses dramatically compared with more conventional multi-year data-center projects.
SpaceX’s dominant near-term recovery path will turn the AI clusters into a hyperscale-style compute rental business for other leading AI companies while still using a portion for internal models.
Tesla headlights have caused a recall of over 20,000 of the company’s two most popular vehicles, the Model 3 and Model Y, due to the low-beam bulb exceeding the maximum allowed intensity according to federal standards.
Tesla initiated the recall with the National Highway Traffic Safety Administration (NHTSA) this morning, stating that the low-beam output “exceeds the maximum allowed intensity in the outer upper-right and outer upper-left areas of the 10U and 90U zone, as prescribed in FMVSS No. 108.”
Tesla sourced the impacted headlights from Marelli Automotive Lighting, a Mexico-based company. The recall impacts 2020-2023 Model Y vehicles and 2017-2023 Model 3 vehicles. It is estimated that every VIN in this recall is impacted by the defect.
🚨 Tesla is recalling 20,349 2020-23 Model Y vehicles and 2017-23 Model 3 vehicles due to an excessively bright headlamp low beam.
Currently, there is no remedy plan in place, as it is still being developed. pic.twitter.com/y34cIO2U0B
— TESLARATI (@Teslarati) August 11, 2026
Typically, Tesla would remedy recalls of this nature through an Over-the-Air software update, which has been a major focus of criticism by the company and its supporters because the NHTSA still refers to it as a “recall,” even though it requires no action by the vehicle owner. The fix is shipped over the internet and downloaded to the car.
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However, there appears to be a potentially different solution for this problem. Tesla has not developed a remedy for this issue, so it could potentially be on the way. The big issue appears to be the fact that these recalled lamps are out of production, and this is an old body style for both vehicles. The headlights and front-end designs are completely different.
Tesla switched to another supplier when the affected headlight design was discontinued. It plans to begin notifying owners of their remedy options by September 15.
Tesla filed a petition protesting the recall to fix the vehicles’ headlight issue, but the NHTSA denied it. Now, Tesla will come up with a solution to fix it.
Tesla has one big financial question to answer for investors: Morgan Stanley
SpaceX AI investment gamble will make it a big winner, firm says
