Faraday Future leases assembly plant

Reaffirming its intention to start deliveries in 2018, US-based electric vehicle startup Faraday Future has signed a lease for a new assembly plant in California.

The company, whose backers include the head of the financially strapped Chinese tech group LeEco, said its new facility will be in Hanford, California, roughly halfway between Los Angeles and Silicon Valley.

Faraday Future had previously said it would set up a factory in Las Vegas to build its vehicles aimed at competing with high-end Teslas.

"We know there is a lot of work and risks ahead, but this event represents a major step forward for the company," said Stefan Krause, the company's chief operating and chief financial officer.

The company exhibited a prototype of its FF91 vehicle at the Consumer Electronics Show in Las Vegas, claiming can outperform the Tesla in key benchmarks.