Faraday Future Seeks $1 Billion In Funding As Main Backer Backs Away

5 months ago by Steven Loveday 13

Faraday

Faraday Future FF91

It seems that Faraday Future is finally taking a different step in the right direction.

Rather than another report that Faraday Future is staying the course, counting on its parent company LeEco, and hoping Jia Yueting will get his act together, we now get a different story. Though it’s pretty late in the game and the damage has been done, this seems like the company’s wisest choice to date. Whether or not everything will work out for the better is still to be seen.

Faraday

Doors open for the Faraday Future FF 91

An anonymous person directly related to Faraday has come forward to reveal that the electric automotive startup is making plans to raise $1 billion to protect itself from parent company LeEco’s financial hardship. Meetings with potential investors, and the selection of an advisement team is already underway.

This news is a bit surprising since Faraday Future doesn’t really have an official director or CEO.  Jia Yueting, the company’s only named investor, has contributed $300 million of his own money to Faraday, but it obviously hasn’t helped enough. Recently, former BMW CFO, Stefan Krause, took Faraday’s financial reigns, so perhaps this development comes as a product of his new plans.

Yueting’s reputation has suffered as the situation at LeEco is dire. He has seemingly removed himself from the Faraday Future equation, is out of the spotlight, and the anonymous source explained that Yueting will not be investing any additional money in the company. The source shared that Faraday is now focused on large scale investors including sovereign wealth funds, in hopes to get the company back on its feet in a short period of time.

Despite the mess that Faraday has encountered, the startup was able to follow through with a concept vehicle reveal. Its FF91 boasts 1,050-horsepower and an unparalleled acceleration time, which was demonstrated at an event in Las Vegas. However, Faraday has halted (scaled back) construction of its Las Vegas factory (there never was construction, but the company has moved some dirt), and backed out of its planned acquisition of a second site in California.

Meanwhile, LeEco is eliminating 325 U.S. jobs and cutting multiple R&D operations. LeEco did, however, report that its cuts would not directly affect Faraday. Stefan Krause also told InsideEVs that while LeEco’s situation and that of Yueting is discouraging, it will have no impact on Faraday’s daily operations.

Faraday Future hasn’t yet responded to a request for comment regarding any of this new information.

Source: Bloomberg

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13 responses to "Faraday Future Seeks $1 Billion In Funding As Main Backer Backs Away"

  1. John says:

    For the sake of the EV industry I hope these guys make it. A rising tide lifts all boats and what pro-EV folks forget is ALL electric manufacturers are ultimately on the same team. Of course some of those manufacturers come to the party kicking and screaming, but they’re still here regardless.

  2. leafowner says:

    FF will become a footnote in the EV history books.

  3. Mil says:

    “unparalleled acceleration time” how is this unparalleled? It was a stripped down version that did 2.39 seconds 0 to 60 mph. A stripped down Tesla Model S has done it in 2 seconds flat.

    Comparing a stripped down FF91 to a stock Model S is hardly fair.

    1. AlphaEdge says:

      Really, what is the worth of all this? Bragging rights? Bunch of nonsense if you ask me.

      1. Mrph says:

        Now thats useless for people with normal to big size dick.

    2. DFinMA says:

      But who really cares? We are approaching the twilight of self-owned cars. Fleets of autonomous ride-hailing cars are right around the corner. The novelty and nostalgia of your own car will hang around for a little while but it’ll pass, particularly in population centers.

  4. Mister G says:

    BYE BYE FARAWAY FUTURE LOL

    1. William says:

      “Ford A Day Future” is in NEED of a Blue Oval Bail Out. Come on over, New CEO, MR. Jim Fields! Have we, (FADF) got a deal for you! We can get you and your angry pissed off shareholders up and running in this fast evolving EV segment. No more Ford EV flat footing and floundering around, for only a cool Billion in cash!

      1. a nobody says:

        ***mod edit (staff) ***

        post removed – this person has been banned (by their own asking previously), so we are upholding that request

        ***mode edit ****

  5. Mrph says:

    The biggest crowd founding ever would be awsome!

  6. David Murray says:

    I am just honestly not impressed with the company or their product plans. We don’t need another $100,000 EV in the marketplace. I suspect even Tesla will be moving away from those price figures in the coming decade and concentrating on vehicles half that price. Tesla started at the high end because it was the only way to accomplish it at the time when the market was so new, battery prices were high, and volume production would be low. Those times have passed. What we need now are more EVs and PHEVs in the $20,000 to $40,000 price range.

  7. Carmi Turchick says:

    As Musk has said many times, car start-ups in general usually fail, and electric car start-ups especially fail.

    It was obvious right away that Faraday Future would not have the capital needed to launch at this late date, because Jia Yueting was also backing LeEco in China and investing in Lucid Motors. Right there the guy would need about eight billion in liquid capital to actually get those companies off the ground…and he is also making movies and cell phones and on and on.

  8. Pushmi-Pullyu says:

    Well, finally, Faraday Failure Future is starting to approach a realistic number for the amount of money it would need to actually get into the business of mass producing automobiles.

    It’s sad to see them face reality only as a last resort before bankruptcy, which surely is approaching very rapidly now.

    “Depend upon it, sir, when a man knows he is to be hanged in a fortnight, it concentrates his mind wonderfully.” — Samuel Johnson

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