Just when you thought Faraday Future was out for the count, the company has found yet another lifeline. Faraday says it has been able to secure another $100 million in financing to continue production and start deliveries of the FF91.
This news comes a few weeks after the company said it has “substantial doubt” about its ability to continue operating unless they obtained “substantial additional funding,” all of which caused them to delay deliveries of the FF91 electric vehicle. The scenario was almost identical to what happened to the company last year when it said it was running out of money in November, but by March was able to secure $135 million in funding to begin production, only to then run out ofmost of that money by April.
According to Faraday this latest round of financing has been provided by investors including Metaverse Horizon Limited and V W Investment Holding Limited, an affiliate of a long-term shareholder of Faraday. FFGP is a partnership of 20 current and former senior Faraday executives and has committed $80 million to this round of financing as an anchor investor.
Faraday says the investment shows a continued commitment to, as well as a show of confidence by a team of 20 current and former senior executive partners, in the company’s ability to achieve its goals. Xuefeng Chen, Global CEO of Faraday Future, said, “I am extremely pleased to share with you the news of this financing round. This is a strong testament to the potential that investors see in FF’s ability to be an industry leader, and confidence in the changes we have made to our governance structure, new management team and systems and the strength of the global partners mechanism.”
In its announcement Faraday said it believes it is significantly undervalued by the market, and through multiple rounds of negotiation in the past two months with several investors, says it believes it has the needed funding commitments to continue its growth and delivery plans.
