EV tech startup Faraday Future raises new funding for the production launch of its FF91 electric SUV
In July, Faraday Future delayed the launch of its flagship electric SUV FF91 after warning that it was short on cash. The Los Angeles-based electric vehicle startup, which went public in a July 2021 merger with a blank-check company, was hoping to raise $325 million to fund its operation through the end of the year. It appears the startup was able to raise funding from investors after many months of struggle.
Today, Faraday Future announced it has successful execution of a definitive agreement for a new financing facility. As part of the new financing agreement, which has total potential funding of as much as $600 million in a convertible secured notes structure, Faraday Future will receive an initial $52 million of committed funds.
The funds are managed and led by ATW Partners.”Investors contributing $27 million (plus up to $31 million from additional investors who commit on or prior to August 17, 2022, and fund on or prior to August 19, 2022) will receive a conversion price of $2.2865 per FFIE share, later contributions will receive a conversion price of $2.69 per FFIE share,” the company said in a press release on Monday.
To further ramp up its production through the end of the year and beyond, Faraday Future says it remains in active discussions with both U.S. institutional investors and international funding sources.
“I am very pleased to have this important new committed capital and framework in place for substantial additional funding. We are working diligently to complete this capital raise process in order to raise sufficient new funds to launch the FF 91. Subject to successful completion of this fundraising process, I am confident that we can deliver cars to our customers in late Q3 or Q4.” said Dr. Carsten Breitfeld, Global CEO of Faraday Future.
Dr. Breitfeld added, “Our Hanford manufacturing facility, recently renamed the “FF ieFactory California” is nearing completion. We have all the equipment on site needed to begin production and are in the final stages of installation. The FF ieFactory California has already produced over a dozen production-intent vehicles. Testing and validation of the FF 91 is well underway, and I am very pleased with the results we are seeing. The FF 91 will be the world’s first ultra-luxury EV and will reset customer expectations for what the future of intelligent mobility can be.”
We covered Faraday Future over a year ago after it announced its plans to go public via SPAC. A few months later, Faraday Future went public via a special purpose acquisition company (SPAC) and private investment in public equity (PIPE) deal with Property Solutions Acquisition Corp in July 2021.
In March 2021. the EV startup came under the U.S. Securities and Exchange Commission (SEC) investigation for making inaccurate statements to its investors. The SEC subpoenaed some members of its management team as part of a probe into inaccurate statements made to its investors, according to a report from Reuters.
Meanwhile, Faraday Future’s former CEO Jia Yueting filed for chapter 11 personal bankruptcy in the fourth quarter of 2019 and now serves as chief product and ecosystem officer at the company. The startup also said that it would miss the deadline for filing its 2021 annual report due to delays caused by the internal investigation.
Founded in 2014, Faraday Future is a pre-production EV startup company developing global solutions that re-imagine transportation, content, and ownership. The startup once promised to start making and selling its so-called flagship FF91 SUV as early as 2018, but it has been forced to postpone the delivery of its first mass-market production several times.