It has entered into a joint venture with a Chinese company to design and manufacture the SP:01, an electric sports car, by 2017, bring out an electric SUV by 2018 and another model by 2020.
Do you remember the American auto manufacturer Detroit Electric which, way back in 2013, vowed to make exciting electric sports cars? Incidentally, it delivered it first car in 2016.
Although Tesla’s rapid rise may have stolen its thunder, the company is set to make a comeback: it has now unveiled a $1.8 billion joint venture with Far East Smarter Energy, a Chinese electric company to kickstart its plan.
The joint venture aims to ramp up production of the SP:01 sports car by the end of 2017 as well as expand Detroit Electric’s European operations by sinking in an additional $370 million spread over four years.
Its long term plans are even more ambitious. Both companies are planning on creating a new facility, which will both design and produce, electric SUVs by 2018, with a third vehicle scheduled for launch for 2020.
The plans appear to be a little too optimistic: a tech company like Tesla takes years to get an electric vehicle ready. A new comer should normally take more time to make a splash in the fiercely competitive EV market with its first model.
Nevertheless, given the monies the collaboration is ploughing into the project, the joint venture is nothing to sneeze at. Detroit Electric is getting access to the kind of funding fledgling carmakers only dream of.
Lets hope Detroit Electric can safely naviguate the tricky pot holes that young companies, including Faraday Futures, typically face.