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Faraday Future announces $2B in new financingby Drew Johnson
The EV maker says it will use the cash to build its first production model.
Embattled electric vehicle maker Faraday Future will live to see another day thanks to a $2 billion cash infusion. Prior to the latest round of financing, Faraday Future was teetering on the brink of bankruptcy.
Although only being announced today, Faraday says it actually secured the investment deal with Season Smart Limited in November of last year. In exchange for the $2 billion investment, Season Smart Limited received a 45 percent stake in Faraday.
However, the deal included a number of moving parts, which explains the announcement delay. Following its investment, Season Smart Limited transferred its equity stake in Faraday to Hong Kong-based Evergrande Healthy Industry Group Limited. That transaction then had to be investigated and approved by the Committee on Foreign Investment in the United States.
Faraday says it will use the cash to bring its first production electric vehicle to market.
"FF will continue to use the committed funds to accomplish our top priority - finalizing the development and delivering the first production vehicle, FF 91 to both US and China markets," the company said in a statement. "The investment will also support Faraday Future to expand its product pipeline, develop cutting-edge technologies and grow the business rapidly in the global marketplace, including our manufacturing facilities in Hanford, California and in Guangzhou Nansha, Guangdong Province, China."
The FF 91 is billed as a full-size luxury crossover that Faraday says can go from 0-60 in just 2.39 seconds. Faraday expects the FF 91 to have a range of nearly 380 miles on a single charge. Pricing for the FF 91 has not been announced.