Faraday Future secures funds, gets ready for production
Faraday Future announced that it received 135 million dollars in financing commitments in the form of convertible secured notes – enough to kick off production of its FF 91 model at the end of March. If all funds are received as planned, the first units could be delivered as soon as early April.
Moreover, the carmaker plans to hold an investor meeting on 28 February to consider a proposal to increase the authorized shares of Faraday Future Class A common stock. If approved, it would allow the company to receive further financing in order to ensure that deliveries of the FF 91 stay on schedule.
In July of last year, Faraday had to admit that its pockets were empty and that it, therefore, had to postpone the start of production of its luxury electric car. Initially, the company hoped to raise enough funds by the end of that year in order to still start production in 2022 – a goal Faraday failed to achieve. Following the debacle, Faraday then ousted CEO Carsten Breitfeld in late November.
Companies from the investment firms ATW Partners and Acuitas Capital, among others, are involved in the current financing. Faraday had already received an advance payment of ten million dollars from Senyun International. However, the company itself admits that production can only start in March if the funds now promised are received in time.
Regardless, the company has scheduled an extraordinary shareholders’ meeting for 28 February 2023. At that meeting, among other things, a vote is to be taken on “an increase in the authorised shares of Faraday Future Class A common stock”. This, if approved by shareholders, is to “pave the way for additional future funding to best support FF 91 Futurist deliveries and the company’s other strategic objectives”.
Faraday Future was founded in 2014 and initial plans were to build and deliver the FF 91 as early as 2018. Due to several problems with the vehicle and investors, the delivery had to be postponed several times.