Is Faraday Future Facing Funding Issues?

The FF 91 is now expected to go into production next year

FF 91
The FF 91, with doors fully extended.
Faraday Future

For EV upstart Faraday Future, 2022 has brought with it a particularly strenuous set of ups and downs. The EPA announced earlier this year that the automaker’s flagship FF 91 would be able to travel 381 miles on a single charge. That follows the announcement of a “production-intent” version of the FF 91. As good news goes, that’s all pretty good!

Now for the less-great news: according to a new article at Autoblog, the company’s stock price has dropped relatively significantly this week — and even more so over the course of the year. Over the summer, its stock was trading at a 52-week high of $7.85; as of this writing, a share can be had for $.35. (Though, to be fair, that’s a slight increase from where it was trading a little over a week ago.)

That’s one of two interconnected financial challenges facing the company. As the article points out, Faraday Future is currently attempting to raise between $150 million and $170 million that will allow for production of the FF 91, now scheduled to take place in March 2023.

According to a Faraday Future press release, an existing investor has also provided “a $30 million binding letter of intent draft.”

The aforementioned press release also addressed some of the fiscal issues the company is presently dealing with. “We will utilize our capital in a disciplined manner that is focused on bringing the best product to market,” said Xuefeng (“XF”) Chen, the company’s Global Chief Executive Officer, in a statement.

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