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Faraday Future preparing for bankruptcy?

by Justin King
Faraday Future preparing for bankruptcy?

Alleged leaked documents claim the company has been preparing to go bankrupt while attempting to attract more investors.

Faraday Future may be preparing to go bankrupt despite voicing confidence in a downsized production plan as the company still attempts to attract investors.

A presentation obtained by TMTPost outlines the bankruptcy strategy, which says "the company will likely be required to file Chapter 11 ... by the middle of August 2017 as raising funds capital within this time frame remains unlikely."

Faraday Future has fired back in a statement to Jalopnik, however. arguing that the documents were fraudulent.

"These documents were not created by Faraday Future, nor were they created on behalf of Faraday Future or at Faraday Future's request," the company said. "We can confirm that any bankruptcy rumors are false, that the company has not filed for bankruptcy protection, and that we continue to meet with potential partners interested in investing in FF."

The statement will likely provide little solace to investors or creditors, as the prospective automaker has consistently failed to live up to its promises.