Photo: Faraday
The American start-up technology company focused on the development of electric vehicles has struggled mightily to manage cash to keep its development and production goals on track.
As recently as last month, the company claimed to have enough cash to roll out the FF 91 in the third quarter but admitted that they would need an influx of capital to finish out the year. The claim is no longer valid as an investor filing report shows the company is delaying the launch again and seeking capital now, according to Bloomberg.
The company has said they are looking to raise $325 million (319 million euros) to fund operations to the end of the year.
Without cash, with EV competition heating up, and entering the second month of the third quarter, a successful launch anywhere in the near future in 2022 seems unlikely.
Raising capital with the current market conditions seems like a lofty goal for a company with a less tha stellar track record. One must consider how investors feel about the company's inability to manage its finances throughout its brief existence.
Formed in 2014, Faraday Future had planned to deliver its first vehicle in 2018, however that date was moved out by a severe 2017 cash crunch and subsequently left the company on the brink of collapse. A $2 billion (1.973 billion euro) influx of cash in 2018 from a company that would later be swallowed up by Chinese conglomerate Evergrande, proved to be insufficient as the company ran through the first tranche of $800 million (786 million euros) that soured the relationship with the investor. The deal was ultimately restructured but, the company lacked the funds to maintain operations.
In January of 2021, it was announced the company would go public by executing a reverse merger with Property Solutions Acquisition Corp. The combined company would be valued at $3.4 billion (3.345 billion euro). Shortly after the announcement, Chinese automaker Geely agreed to share engineering and technology with Faraday Future and take a minority stake in the company. The companies also had plans for Faraday operations to be expanded to China at some point. Based on valuation, Faraday was expected to receive $1 billion (986 million euros).
The company was listed on the U.S. NASDAQ stock on July 22, 2021.
Still, the billion-dollar influx of cash was not enough to bring their luxury electric FF 91 SUV into production.
The company has said they are looking to raise $325 million (319 million euros) to fund operations to the end of the year.
Without cash, with EV competition heating up, and entering the second month of the third quarter, a successful launch anywhere in the near future in 2022 seems unlikely.
Raising capital with the current market conditions seems like a lofty goal for a company with a less tha stellar track record. One must consider how investors feel about the company's inability to manage its finances throughout its brief existence.
Formed in 2014, Faraday Future had planned to deliver its first vehicle in 2018, however that date was moved out by a severe 2017 cash crunch and subsequently left the company on the brink of collapse. A $2 billion (1.973 billion euro) influx of cash in 2018 from a company that would later be swallowed up by Chinese conglomerate Evergrande, proved to be insufficient as the company ran through the first tranche of $800 million (786 million euros) that soured the relationship with the investor. The deal was ultimately restructured but, the company lacked the funds to maintain operations.
In January of 2021, it was announced the company would go public by executing a reverse merger with Property Solutions Acquisition Corp. The combined company would be valued at $3.4 billion (3.345 billion euro). Shortly after the announcement, Chinese automaker Geely agreed to share engineering and technology with Faraday Future and take a minority stake in the company. The companies also had plans for Faraday operations to be expanded to China at some point. Based on valuation, Faraday was expected to receive $1 billion (986 million euros).
The company was listed on the U.S. NASDAQ stock on July 22, 2021.
Still, the billion-dollar influx of cash was not enough to bring their luxury electric FF 91 SUV into production.
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