Faraday Future Raises Fresh Backing For Electric SUV Debut
Electric car start-up Faraday Future looks to raise up to $600m in new funds as it plans launch of its first luxury SUV later this year
Electric vehicle start-up Faraday Future said it is to raise an additional $600 million (£496m) in funding as it hopes to begin manufacturing its flagship vehicle later this year.
The company said it would receive an initial $52m of committed funds as part of a new financing facility announced on Monday.
The company’s manufacturing facility in Hanford, California was nearing completion and was testing the FF 91 vehicle, said chief executive Carsten Breitfeld.
The company said it was in active discussions with investors in the US and internationally for “significant additional near-term funding” as it planned to begin deliveries in the third or fourth quarter.
Manufacturing delays
“Subject to successful completion of this fundraising process, I am confident that we can deliver cars to our customers in late Q3 or Q4,” Breitfeld said.
The vehicle was announced in 2017 with production initially planned for late 2020. Most recently production was set to begin this month, before being delayed to later this year.
Breitfeld said the Hanford plant had all the equipment on-site that was needed to begin production and was in the final stages of installation. The plant has already produced more than a dozen production-intent vehicles, he said.
Faraday Future said its head of global supply chain, Mathias Hofmann, would temporarily oversee manufacturing operations at the Hanford facility, replacing vice president of manufacturing Matt Tall, who is leaving the company.
High-tech concept
The firm said in a July regulatory filing it would need more cash to launch its first vehicle.
Faraday Future went public in July of last year through a merger with a blank-cheque company. It is currently trading at about 71 percent below its initial offer price and is about 54 percent down so far this year.
In May the firm said that as of March it had only 401 preorders for its first model, intended to be a high-end SUV with technology-heavy features.
Electric vehicle start-ups have been looking to cut costs amidst broader economic difficulties and rising materials prices.
