Faraday Future Cannot Escape the Past Despite $350 Million Deal
Photo: Faraday Future
Electric vehicle maker Faraday Future has been through the wringer as of late. In this latest chapter in Faraday’s saga, the company announced it has a deal to raise up to $350 million as it ramps up to the actual production of its FF 91 electric car.
Reuters reports the company has secured financing from an affiliate of Yorkville Advisors Global. The financiers have committed an initial $200 million to Faraday that will – in theory – give the company some flexibility to get FF 91 production and deliveries started.
Exact terms of the next $150 million aren’t being reported on. But no matter, let’s take a look at some of the things Faraday had to deal with since 2022 began.
February:
Faraday’s board chairmen and two other executives resigned because the company lied about how many preorders of the FF91 it received. Faraday supposedly built its first production-intent FF 91.
March:
Faraday executives are subpoenaed by the SEC as part of a probe into inaccurate investments made to investors.
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April:
You all say that the FF 91 is the worst electric car on sale today despite it not being on sale today.
May:
Faraday revealed it only has 401 preorders of the FF91… down from the many thousands the company once said it had on the books
July:
Faraday pushes back the start of FF 91 production and says it is short on cash. The car was supposedly going to come in the “third or fourth quarter” of this year… we are in the fourth quarter, and it hasn’t.A shareholder group affiliated with Faraday’s founder demanded that he be removed from the startup’s board. They even said they would give the company $100 million if he did so, but later rescinded the offer.
August:
140 Faraday employees want Susan Swenson, the company’s executive chairperson, to be removed.
September:
Faraday says it has just $39 million on hand, down from $47 million the month prior.Faraday employees call on shareholders to oust two key members of the board. Those shareholders eventually filed suit to get them out.
October:
Faraday cuts a few dozen employees to save money
November:
Faraday cuts staff salaries by 25 percent to save moneyFaraday gets $350 million… probably
That’s all I got for 2022 as of today. There’s a small change we missed something, but honestly it’s just too hard to keep up with everything that is going on behind the scenes at Faraday Future.
