Faraday targets April for EV deliveries, sees fresh funding

EV startup Faraday Future is in discussions with investors for additional capital of up to $170 million as it sets a target to deliver its FF 91 electric SUV to customers in April 2023.

The Los Angeles-based company said it expects to start production of its FF 91 at its manufacturing facility at the end of March 2023.

Faraday Future, which has been struggling to raise capital to start production, said on Thursday it had received a $30 million binding letter of intent from an existing investor.

Existing investors are also expected to provide capital to support production of its debut model, according to the company.

The latest updates from the company’s investor meeting come after Faraday Future announced management changes earlier this week, following a long-drawn probe within the company into allegations of fraud and after resolving a dispute with an investor seeking the removal of two board members.

Last month, Faraday’s board voted to replace CEO Carsten Breitfeld, a former BMW executive, and replace him with Xuefeng Chen, who currently leads Faraday’s China division.  

In November, the company said it had “substantial doubt” about its ability to continue as a going concern and postponed deliveries of its FF 91.

Higher costs for raw materials and depleting cash reserves have forced investors to question the health of EV startups’ balance sheets.

EV startups that looked to revolutionize the industry with pathbreaking products have been struggling as a slowdown in the global economy and difficulty in raising funds took a toll on production schedules and deepened losses.

Faraday Future’s shares have fallen over 90 percent this year to well below a dollar apiece and shareholders in a special meeting in November approved a reverse stock split proposal to stay in compliance with Nasdaq’s public listing rules.