Faraday Future, an electric car startup in crisis, has received bridging financing of up to 225 million dollars from the U.S. commercial bank Birch Lake Associates to complete the development of its FF 91 model and prepare for series production.
The financing will also be used to pay outstanding debts. There is talk of paying 60 per cent of the suppliers waiting for their money – above all smaller companies. In addition, Faraday Future calls the bridging finance itself a measure to convey trust and to receive promises already received from key suppliers.
The company has also announced a $1.25 billion equity procurement program is to be launched with Stifel Nicolaus & Co as a partner. This shows once again how much the start-up is striving to restore its liquidity, which has suffered greatly as a result of recurring financial difficulties.
Californians recently announced the creation of a 50:50 joint venture with Chinese online game operator The9. The latter is said to have pledged to invest up to $600 million to enable production and distribution of the V9 model based on Faraday’s FF 91 electric SUV in China.
Faraday is very vague about the debut of their fully-electric FF 91 and continues work on the pre-series test vehicles. With the growing test fleet, the engineering team has made continuous progress towards the completion of the FF 91. When the startup announced the production of the first pre-series model in August 2018, it was still said that deliveries of the series model would start in the first half of 2019.