The last time I published anything related to Faraday Future was on July 5, 2019. The company had then fired dozens of employees that were on furlough. On January 13, 2020, Tom Moloughney took a ride on an FF91 in Las Vegas, but that was it. When we thought we would not hear about it again, the company decided to shake things up in a big way: it will go public through a SPAC and hired Foxconn and Geely to build its cars.
Apart from the FF91, Faraday Future also announced the FF81 back in April 2019. It was a smaller and supposedly more affordable car that was to be put for sale in 2021. Thanks to Geely and Foxconn, that promise may be accomplished.
As we told you on January 13, the two companies have teamed up to build cars for other companies. At first, it seemed Foxconn would do that on its own with its MIH Open Platform, but Geely later said it had the same intentions. Eventually, they joined forces, which does not necessarily mean they will not try to do that on their own in the future. In Faraday Future’s case, that’s a joint effort.
According to Geely, what it signed with Faraday Future was a framework cooperation agreement in technology and engineering support. The companies “will explore the possibility of using OEM production services provided by Foxconn and Geely.” At this point, it makes perfect sense for everyone involved.
Faraday Future’s plans for its own factory went down the drain when it had to sell the terrain in Nevada where it would be built. Geely has an idle production capacity in its factories that it can use for this joint venture with Foxconn. Everybody wins.
To show that this has great possibilities of going forward, Geely became a minority investor in Faraday Future’s listing. The company will go public through a merger with Property Solutions Acquisition Corp, a SPAC (special purpose acquisition company).
The merger is expected to be worth $3.4 billion and the resulting company will be traded at NASDAQ under the ticker symbol FFIE. Geely said more details on their framework cooperation agreement will be released in the future: probably when it becomes something more specific, such as a manufacturing agreement.