Another delay for the launch of Faraday Future's first electric vehicle
In February, Faraday Future debuted the final version of its FF91 electric SUV at its California factory and announced that it would start producing the vehicle in the third quarter of 2022. According to Bloomberg, the unsuccessful firm has informed investors in a filing that it will have to extend production yet again and require additional funding for commercialization.
It appears that the firm has to postpone shipments of FF91 to "the third or fourth quarter of 2022." It's now likely aiming for late Q3, seeing as the third quarter has already begun; nevertheless, the fourth quarter appears more likely, if Faraday Future's plans ultimately work as expected. Especially since it also needs to seek funding: The company informed investors that it will require additional cash to launch the FF91 and that it is seeking for about $325 million in order to continue operating until December 31st, 2022.
Faraday Future was founded in 2014 and planned to release its first electric car in 2018. It's delayed the launch of its EV several times due to financial difficulties. In 2017, Faraday Future nearly ran out of money until Evergrande banking firm Season Smart agreed to invest $2 billion in it. Although Season Smart supplied $800 million as a initial cash injection, Faraday Future swiftly burned through it, and the company was embroiled in a feud with its main investor throughout 2018.
While the company was able to reach a restructuring agreement with Evergrande at the end of 2018, it didn't have enough cash to rehire the workers it had put on unpaid leave. The firm also decided against building a factory in Las Vegas and putting up for sale for $900 million its 900-acre plot. Back in 2021, Faraday went public in a merger with a blank-check firm, but it appears that wasn't enough to solve its financial difficulties.
The news comes in the midst of a dispute between the firm and its founder, Jia Yueting, who resigned as CEO in 2019 as part of the firm's restructure agreement. According to reports, a shareholder organization linked with Yueting made an offer to Faraday Future "at least $100 million" to remove an unnamed director from the startup's board. The company reportedly resisted and was accused of not giving the offer "the gravity, urgency and fairness it deserves" given Faraday Future' s financial position.