Wednesday, 2024 February 28

Faraday Future founder might sell $500m stake to resume underfunded mass production

Unnamed source from within US-based electrical vehicle maker Faraday Future disclosed that the company is short of funding for mass production (link in Chinese) of its FF 91 model.

According to the anonymous source, the company still needs US$500 million to kick start the production.

The FF 91 model, which was premiered on Jan 4th 2017, is now stalling at the pre-mass production stage, as the assembly lines are ready for mass production as long as Faraday receives its capital injection to resume cooperation with suppliers.

To jump over the hurdle, Faraday Future founder Jia Yueting proposed on in November at a staff meeting a plan to surrender his financial rights in the firm to more employees and investors for the much-needed cash.

The source predicted Jia’s stake would be reduced to a very low percentage but shared no further details on this plan.

Since its establishment in 2016, Faraday has spent a total of $1.6 billion to drive its EV dream, with about $1 billion directly from Jia himself and $600 million from Evergrande Health, which is controlled by China’s major real estate developer China Evergrande Group.

Evergrande Health now takes a 32% preferred stake in Faraday Future, a partial result of the break-up agreement reached between the two on Dec 31st.

Editor: Ben Jiang

Jingli Song
Jingli Song
I believe Chinese innovation at various level needs to be known by the world.

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