Faraday scales back US plans

Luxury electric car startup Faraday Future, one of several Chinese-funded companies taking aim at Elon Musk's Tesla Inc, is throttling back on plans to build vehicles in the United States, the company and public officials said.

Faraday, an affiliate of Beijing-based Leshi Internet Information and Technology Corp, has also pared its planned product portfolio down from seven to two vehicles, according to two sources with direct knowledge of the company's plans.

Faraday will build a much smaller auto assembly facility than originally planned in North Las Vegas, Nevada, a city official said late on Tuesday. North Las Vegas city manager Qiong Liu said Faraday told the city it will build a 60,390-square-meter facility, beginning later this year.

The downsizing follows an acknowledgment by the company's founder Jia Yueting that his global operations were overextended. Former Faraday executives have said the company struggled with cash flow issues almost from its inception.

At least a dozen key US executives have departed Faraday in the past nine months, according to the company and several of those executives.

In a statement, Faraday said it still plans to eventually construct the larger plant, but gave no timetable.