EV maker Faraday Future to secure up to $600 million in funding
- ByStartupStory | August 16, 2022
Faraday Future Intelligent Electric Inc announced on Monday that it will raise $600 million in capital to produce its FF 91 premium automobile later this year. As part of a new financing agreement, the firm will receive an initial $52 million in pledged cash.
Due to increased material prices, EV firms that promised to disrupt the automobile industry by employing a technology-heavy approach to vehicle design are now scurrying to get new lines of credit and slash expenses.
Faraday Future’s manufacturing unit in California was approaching completion, and the company’s Chief Executive Officer Carsten Breitfeld stated that the FF 91 electric vehicle was being tested. The electric car manufacturer said it was in active talks with investors in the US and across the world for “substantial additional near-term funding” as it prepares to begin deliveries in the third or fourth quarters.
Faraday Future said on Monday that Mathias Hofmann, its director of the global supply chain, will temporarily supervise production operations at its Hanford, California facility, replacing Vice President of Manufacturing Matt Tall, who is departing the firm.
In a regulatory filing in July, the EV company indicated the need for extra funds to launch its FF 91 model, despite CEO Breitfeld telling Reuters a month earlier that the car will be able to debut without the need for further funding.
Faraday Future is one of many electric vehicle startups that went public via blank-check mergers, an industry that has stalled this year owing to regulatory scrutiny and the dismal share performance of firms who went public through that method.
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