EV tech startup Faraday Future raises $90M in funding for the production launch of its FF91 electric SUV
The ongoing global economic downturn has led to a funding drought, forcing tech startups to lay off some of their employees and freeze hiring while also making it difficult for them to raise new funding. One of the startups feeling the pinch is Los Angeles, California-based Faraday Future Intelligent Electric.
In July 202o, Faraday Future was forced to delay 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.
In 2022, the company blamed the funding struggle on misinformation, saying that a “misinformation campaign” has hurt its fundraising efforts. Fast forward almost a year later, and it now appears the startup was able to raise funding from investors.
Today, the electric-vehicle startup said it has raised $90 million in funding commitment from its existing investors led by private equity ATW Partners, with participation from Senyun International. The funding news sent the company shares up by about 5%, Reuters reported. Faraday Future said it will use the fresh capital infusion to support the production and delivery of its much-delayed luxury electric sports utility vehicle FF 91 EV.
In August of last year, 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, another electric vehicle (EV) start-up called Lordstown Motors recently filed for bankruptcy protection and filed a lawsuit against its investor-partner, Foxconn, alleging a breach of certain contractual obligations. Faraday Future has also been facing financial difficulties and a governance dispute with one of its major shareholders, FF Top Holding, resulting in a reshuffling of the board.
In response to these challenges, Faraday Future announced its intention to raise $100 million in debt last month. The company now states in a regulatory filing that it will continue to explore additional funding options to address its cash flow needs.
Founded in 2014 by Tony Nie, Faraday Future is a design and technology company developing global solutions that re-imagine transportation, content, and ownership. Faraday joins a growing list of high-profile companies that have gone public via the so-called special purpose acquisition companies (SPACs).