EV startup Faraday Future struggles to raise funding for its FF 91 luxury electric car, blames it on ‘misinformation campaign’
Due to the ongoing global economic downturn, tech startups are finding it increasingly difficult to raise venture capital to fund their projects. The recession and slow economic growth are forcing startups to lay off some of their employees and freeze hiring. But one startup is blaming someone else.
Los Angeles, California-based Faraday Future Intelligent Electric said yesterday that a “misinformation campaign” has hurt its fundraising efforts as the electric-vehicle startup looks to start production of its FF 91 luxury electric car.
“Threats that began with lawsuits have escalated to threats of physical violence and even death threats,” the company said, adding it was working with law enforcement to investigate.
In August, some of the company’s employees wrote to the board and shareholders seeking the removal of executive chairperson Susan Swenson, suspecting she had organized attempts to “push the company into bankruptcy and restructuring.”
Meanwhile, Faraday Future said it has hired a law firm to conduct a “thorough independent external investigation” and found the “allegations” were without merit, Reuters reported.
The news of the struggle with fundraising comes just a month after the startup raised new funding for the production launch of its FF91 electric SUV. The company said in August that it has successfully execution of a definitive agreement for a new financing agreement, which has total potential funding of as much as $600 million in a convertible secured notes structure.
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.
Founded in 2014 by Tony Nie, Faraday Future is a design and technology company developing global solutions that re-imagine transportation, content, and ownership. With the recent success of Tesla, Faraday is hoping to raise new funding through the IPO to expand its operations and global footprint. Faraday joins a growing list of high-profile companies that have gone public via the so-called special purpose acquisition companies (SPACs).