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Faraday Future Electric Car Investing

Will This Company Destroy Tesla (NASDAQ: TSLA)?

Written by Jeff Siegel
Posted December 1, 2015

Has the Tesla killer arrived?

Some think so.

You see, on January 6, 2016, the Consumer Electronics Show begins in Vegas.

Amongst the swarms of tech geeks and future billionaires who do million-dollar deals on their smartphones will be a new tech company that many believe will make the Tesla Model S about as valuable as a typewriter ribbon on the International Space Station.

The company is called Faraday Future, and 18 months ago, this company was born out of a simple question: What will mobility look like in the future?

What Millennials Will Drive

Faraday Future has been in stealth mode since I first uncovered it about a year ago.

But now, as it gears up to show off its new concept, which is inspired by its design and engineering vision for the future of mobility, interest has gone from “well, that's an interesting story” to “wow, this might really happen!”

In a recent interview with The Verge, Nick Sampson, the company's head of engineering, made the following statement in regards to the vehicle Faraday is producing:

As soon as you get in your car, you lose that level of connectivity. Today’s cars aren’t meeting the needs of today’s people, let alone generations yet to come. The kids of tomorrow will be wanting to be connected all the time.

If I plan my journey, the car should know my journey and some of the places I want to visit along the way, because it knows my preferences. The car should begin to learn my desires, and not just me as owner or user, but the people who are with me. It should be a much more social event to be in the car, to interact with people inside and outside the car.

I'm not a millennial, so I can't really wrap my head around such a concept. I don't need to be connected 24/7. Nor do I desire such a thing. But today's next-generation vehicles aren't being built for old Gen Xers like me.

Sampson goes on to say:

Uber, for instance, is a new way of traveling, a new way of getting about. Some people are considering not even having a car. The cars of the future have got to meet those needs. I don’t have to buy one compromise vehicle, I can just have use of the perfect model when I need it, like a subscription service. We now subscribe to music; we used to buy music.

This Ain't Science Fiction

I have to admit, I love how much this contradicts the conventional internal combustion vehicle of today.

There's not a single major automaker even coming close to this kind of disruption.

The folks over at Faraday are not just looking to deliver an electric car; they're looking to deliver a premium service — an electric vehicle that knows your routine, knows where you like to stop for coffee in the morning, and even knows what time to pick you up.

You don't even need to call it up on your smartphone, which is really what many folks currently see as the future. No need to spend the 10 seconds it'll take to press the icon on your phone. As you walk outside, your vehicle will be waiting for you. The heat or air condition is set to your preferences — not because you pre-programmed it, but because the car knows what you like.

The music you want to listen to begins once you step into the vehicle. A display screen may pull up your morning emails for you to read while your vehicle, which drives autonomously, delivers you safely to your office.

This ain't science fiction, folks. This is happening.

Of course, as investors, we can't invest in Faraday Future right now.

And the truth is, as exciting as this sounds, like many start-ups, Faraday could fail. I don't say this, by the way, because it's something I'm rooting for. Truth is, I would love to see such a vehicle hit the market. But even if it does make it, I don't think it'll be a Tesla-killer.

Truth is, I see it as a complement to Tesla and to the coming Apple car, which is probably going to blow everyone away, too.

The companies building the cars of tomorrow don't even really see much competition between each other, because together, they're competing with the antiquated internal combustion engine that's clearly been given its death sentence.

And quite frankly, that's not even much of a competition at this point.

I suspect the only thing these electric carmakers will really be vying over in the coming years is access to the materials they'll need to “fuel” these vehicles.

And that's something we're already on.

To a new way of life and a new generation of wealth...

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Jeff Siegel

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Jeff is the founder and managing editor of Green Chip Stocks, a private investment community that capitalizes on opportunities in alternative energy, organic food markets, legal cannabis, and socially responsible investing. He has been a featured guest on Fox, CNBC, and Bloomberg Asia, and is the author of the best-selling book, Investing in Renewable Energy: Making Money on Green Chip Stocks. For more on Jeff, go to his editor's page.

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