Like Tesla, the company is named after a 19th century inventor, in this case chemist and physicist Michael Faraday, who made a string of important scientific discoveries including electromagnetic induction, the principle behind the electric transformer and generator.
"We are very excited to make our $1 billion investment in U.S. manufacturing—and this is just phase one," stated the company on Thursday.
The carmaker announced it is looking for a location for its first manufacturing facility, where Faraday aims for the first cars to roll off the production line there in 2017.
The company's rapid growth and deep pockets have led some observers to investigate its origins, with some speculating that the firm is no more than a front for Apple.
The Los Angeles Times has also investigated Faraday, and names its CEO as Jia Yueting, chairman and founder of Chinese entertainment company LeTV, whose interests include online video, internet TV, smart gadgets and smartphones.
Last month LeTV announced plans to release its first electric vehicle at the Beijing auto show in April 2016. Reportedly called 'Mule Car,' the vehicle has already undergone testing in the US.