Faraday Future Secures $600 Million In Funding
Recently we reported that Faraday Future was facing issues related to unpaid bills, possible work stoppage, and loss of company credibility. New reports state that China-based Leshi Holdings, has rounded up $600 million in secured support for Faraday’s automotive efforts and parent company LeEco’s high-tech business pursuits.
According to Reuters, LeEco has been dealing with a fund shortage due to quick expansion and a myriad of product lines. The company has invested in many technological pursuits, including electric cars (Faraday Future), smartphones, and TVs. CEO Jia Yueting communicated the cash problem to employees recently in the form of a letter.
There has been much speculation as to whether or not Faraday Future will be able to follow through with its factory and other planned expansions. Some believe that, despite the company’s touted concept car, and the more recent “unveiling” of the supposed “actual car”, a mass-produced Faraday Future vehicle may not come to fruition. The project has already cost the company $1.5 billion and counting. Independent technology analyst, Richard Windsor explained:
“I suspect that the automotive ambitions will be reluctantly curtailed which I think gives LeEco its best chance of success in its other endeavors.”
Ten Chinese companies are pooling their resources to assure that Faraday can disprove the doubters. Initially, by the end of this month, $300 million will be invested in LeEco, with the other half to come at a later date.
Regardless of any naysayers, Jia maintains confidence that Faraday can and will become a force for Tesla to reckon with.
Categories: Faraday Future