EV maker Faraday Future to raise $100 million in debt to support delivery plans
12:36 am Wednesday, May 10th, 2023
(Reuters) -Electric vehicle (EV) startup Faraday Future Intelligent Electric on Tuesday said it was raising $100 million in debt as it aims to achieve initial deliveries of its flagship FF 91 Futurist vehicle after a funding crunch led to multiple delays.
The company said it will also use the new debt funding to ramp up production.
“This round of financing commitments is expected to provide the Company with capital to support our FF 91 delivery milestone, sales and service system development, as well as support our near-term production ramp-up goals,” Xuefeng Chen, the global CEO of Faraday Future, said.
In April, Faraday Future had pushed back the initial deliveries of the FF 91 Futurist by another two months, saying at that time that they would depend on “substantial additional financing”.
Deliveries were originally slated to start in late 2022.
The Los-Angeles based company has been struggling with a cash crunch and a board reshuffle following a governance dispute with one of its largest shareholders, FF Top Holding. Last November, Faraday Future raised doubts about its ability to continue as a “going concern”.
However, the company managed to secure enough funds in February to begin the vehicle’s much-delayed production.
FF Global Partners (FFGP), a partnership of current and former executives of the company, has committed $80 million to this debt financing round as an anchor investor. Other investors include Metaverse Horizon Limited and V W Investment Holding.
(Reporting by Akanksha Khushi in Bengaluru; Editing by Rashmi Aich and Janane Venkatraman)
