Faraday Future Confirms $2 Billion In New Funding

JUN 26 2018 BY MARK KANE 32

Faraday Future announced that it secured $2 billion in the first round of equity funding with a new investor on-board.

Faraday Future FF91

Faraday Future FF91

Evergrande Health Industry Group Limited (Evergrande Health), a Hong Kong Stock Exchange listed company, takes 45% share in the company as 33% remains in hands of the original shareholders, and 22% belongs to the team at FF.

The company founder Yueting (YT) Jia will officially be taking the role of FF Global CEO.

In other words, Faraday Future is moving forward with its electric car vision to commercialize the FF 91.

Earlier this month, FF secured building permits and chosen a contractor to begin work on its Hanford production facility.

Here is the essence of the press release on the funding:

“Faraday Future (FF) announced today that it has confirmed the $2 billion (USD) of first round equity funding following Committee on Foreign Investment in the United States (CFIUS) approval. This marks a major milestone for FF to achieve its vision of delivering a clean, intelligent, connected and shared global mobility ecosystem. Yueting (YT) Jia, founder of FF, will also officially be taking the role of FF Global CEO.

On November 30, 2017, Season Smart Limited entered into an investment agreement to invest $2 billion (USD) into FF.

Today, FF also welcomes Evergrande Health Industry Group Limited (Evergrande Health), a Hong Kong Stock Exchange listed company (0708.HK), to be our newest strategic investor and shareholder after the share transfer of the ownership of Season Smart Limited to Evergrande Health. The transaction was closed after completion of review and investigation by CFIUS.

Pursuant to the terms of the $2 billion investment, the details of share structure are 45% for Evergrande Health (Investor), 33% for the original shareholder, and 22% for the team at FF.

FF would like to thank all our partners, suppliers, employees, and our new investor for their patience and continued dedication towards the company throughout this crucial growth process. FF welcomes Evergrande Health as a new strategic investor. More than 1,000 global employees together at FF will continue working to break boundaries of various industries and sharing the intelligent mobility ecosystem we want to create. This influx of funding allows us to continue pushing forward the goal of delivering FF 91, our first production vehicle, and beyond.

FF will continue to use the committed funds to accomplish our top priority – finalizing the development and delivering the first production vehicle, FF 91 to both US and China markets. The investment will also support FF to expand its product pipeline, develop cutting-edge technologies and grow the business rapidly in the global marketplace, including our manufacturing facilities in Hanford, California and in Guangzhou Nansha, Guangdong Province, China.”

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32 Comments on "Faraday Future Confirms $2 Billion In New Funding"

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John

Gotta tip my hat to Faraday, they don’t give up. That they can still talk wealthy folks out of their cash is pretty impressive- seeing their track record.

Will

DOA. I’m waiting for Byton and SF motors as better auto companies. Lucid Air dead as well

antrik

What exactly does Byton do better? While they are aiming at a very different price range, their general approach seems kinda similar to me…

Dan

Byton put a big wide screen TV that’s all I can say. But a TV like that should cost no more than $300.

Will

Has a better looking functional car

Dan

Many stupid investors that’s all I can say! They cheat people’s money from stock exchange to play with! Yeah we need more competition and get it on the market! I’ll look at it only when it dropped under $10K.

floydboy

Well………….I got nuthin.

Bunny

I always look at this guy as the modern day Bricklin, will eventually actually go into production and probably fail and just keep trying to come back with something , yet never really be successful in the automobile business.

antrik

I’m not sure that’s a fair comparison. While several of Bricklin’s automotive ventures failed (including both attempts at making his own cars), he also set up (and subsequently sold off) several more or less successful ventures. YT can’t claim any successful automotive venture yet AFAIK…

Bunny

I’ll agree you have made very valid points, Malcolm Bricklin did manage to be somewhat successful in some of his ventures. One thing for sure, he never gave up and kept moving forward!

Dan

You know this guy made his fortune by selling TV streaming box in China. Yesterday I read they set up satellite TV dishes in other countries to intercept signals then converting to TV box streams without paying the content provider! Speaking of grand theft that’s what this guy is. Yes so millions of Chinese viewers watched World cup football paying to this guy instead of the official channels.

bjrosen

There’s a sucker born every minute.

Kosh

EXACTLY my first thought!

Chris O

Odd that this company can find funds while things got very quiet around Lucid Motors despite the latter having a much more attractive product proposition. Guess hot air does pay off in the end.

Prsnep

Seeing a few pictures and reading a few articles does not make you an expert.

Dan

Yes at least Lucid was targeting at an honest $60K price point unlike this bandit wanting $140K for his pos that failed in CES demo!

David Green

Wow, that came out of nowhere… I am curious though, why do all these automotive start ups want to build their own factory, why not just perfect the design and sub-contract the production engineering, and production to Magna, or some other builder as they are better at production engineering and assembly? Ala jaguar I-Pace…

Kosh

Once Elon has perfected the “the alien dreadnought”, there’s probably a good business model in selling it as a franchise…..

Doggydogworld

Yeah, car companies will line up to buy Tesla’s parking lot tent factories!

David Green

haha! Elon has not perfected anything other then hype. Do you know who designs and builds Tesla’s assembly line equipment? Comau, and guess who owns Comau? Can you say Fiat/Chrysler? Guess who else Comau works with? Just about every major automaker. Tesla has struggled with assembly of every one of their products because they are not good at it, and they shortchange the production engineering process. I am sure it would be cheaper for Tesla to hire Magna to get the engineering right to begin with, and then deliver the production goals on schedule. I think Tesla’s problem is Elon’s ego, and the myth of reinvention the car making process. Sorry, but as Tesla makes advances, so do the others, and vice-versa. Jaguar just demonstrated how easy it is to match Tesla in almost every metric, and blow Tesla away in quality.

antrik

Match Tesla in almost every metric, except for the one that actually matters: competitive pricing…

BriBrn

Jaguar’s pricing is competitive, isn’t it? As always, they started with relatively high priced product and will then eventually introduce cheaper models (but not too cheap, it is Jaguar after all). However, the price of ipace seems to be competitive both with Tesla and with their own sporty cars. What am I missing?

antrik

My understanding was that the price is considered rather steep compared to other Jaguar offerings? Might be wrong though — I’m not really familiar with Jaguar pricing myself.

As for Tesla, it’s tricky to compare, since the I-Pace sits somewhere in-between Tesla’s existing offerings. I’ve seen claims however that although it’s closer to Model S and X in pricing, it’s in fact closer to Model 3 in interior space…

BriBrn

You cannot really directly compare price of an entry i-pace and f-pace as there is such a huge performance difference. Once your upgrade the ICE to the sporty version to get closer in performance the price becomes very reasonable once you factor in that electric cars should have significantly lower running costs – hehe, especially based on oily stories from traditional Jaguar owners 🙂

David Green

Well, I-Pace is cheaper then S and X, and has more capabilities for the average SUV customer, as long as they do not need 7 seats.

antrik

What kind of capabilities do you mean? It seems to have more serious off-road capabilities; but how many SUV customers ever do that?

For all I know, the *average* SUV customer just wants a big car for city and highway driving (i.e. a more trendy substitute for a station wagon or mini-van…) — and in that regard, the I-Pace is far less capable (much smaller) than Model X or even Model S.

Will

A lot in rural America

Dan

Yeah you know Musk is their role model from PayPal which they copied the idea and set up their own in China. Cotton EV start up and funding scheme! Except that Tesla did have its unique design while these wanna be pirating copycats have no originality and even greedier!

antrik

Well, most of these start-ups are pointless ego trips to begin with: they don’t actually have anything innovative to offer that would warrant starting a new company in the first place… They seem to be thinking, since Tesla did it, they can surely copy them: but ignoring the fact that Tesla only had a chance because it had no competition — and even then, only barely made it.

menorman

Good, the ability to have a factory right next to a stop on the opening part of the CAHSR line cannot be understated for the positive potential it holds for the San Joaquin Valley.

Dan

After all it’s Chinese money. Just don’t try to grab money from US investors! Evergrande Health? Taking money from health products which got their money from gouging sick people. Well that’s a bloody formula there.

John Doe

Bring it on. More cars more choises.
Hope they and every EV company succeed,