Flush with new cash, embattled electric-car startup Faraday Future hopes to turn the page on a rough 2 years

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The long-suffering electric-car outfit Faraday Future hopes to turn the page on what has been a rough couple of years for the company.
A new, Hong Kong-based investor has promised a $1.5 billion infusion — $550 million of which is already in the bank, a source familiar with the company’s business dealings told Business Insider.
The company says it plans to recharge its operations, beginning with a supplier summit at its Los Angeles-area headquarters Tuesday and Wednesday. Bosch, LG Chem, Fuji Technical & Miyazu, and Velodyne are among the suppliers in attendance.
Lingering challenges are still on the horizon as Chinese regulators pursue Faraday Future’s top executive, Jia Yueting, over hundreds of millions in unpaid debt.

More than two years after it first emerged from stealth mode and pitched itself as a “Tesla-killer,” Faraday Future is best known not for making high-tech, 1,000-horsepower electric cars. Instead, the unpaid bills, lawsuits, an employee exodus, and public bickering with former executives have defined what had once been a potentially exciting new challenger in the race to build the next great electric-car company.

Faraday Future’s top backer, Jia Yueting, drew his line in the sand early, in spring 2016, when he said “We hope to surpass Tesla and lead the industry leapfrogging to a new age” in an interview with Reuters. He was talking about Faraday Future, just four months after a lackluster debut at the Consumer Electronics Show in Las Vegas. That month, the company had hosted a well-attended ceremonial groundbreaking for its proposed factory in North Las Vegas.

Today, North Las Vegas is on an indefinite hold, and Faraday has been drowning in debt in the US, while Jia, the company’s founder and chief executive is also being pursued by Chinese regulators for hundreds millions of dollars in unpaid debts tied to his companies there.

Now Faraday is hoping to turn the page on a tumultuous couple of years. With new cash on hand and plans to start fresh, the company is hosting a suppliers’ summit at its Los Angeles-area headquarters to show it’s not giving up just yet. A number of suppliers are expected to attend the gathering, including Bosch, LG Chem, Fuji Technical & Miyazu, Velodyne among others.

“Our goal was for suppliers to walk away with renewed confidence about our plans and our funding,” Faraday’s head of supply chain Pablo Ucar said in a press release.

New money

According to a source with knowledge of Faraday Future’s business dealings, the company has secured about $1.5 billion in new investment. The source did not reveal the investor’s identity, saying only that it is a Hong Kong-based entity.

Faraday received $550 million of that investment so far. About $300 million arrived in early December, according to the source. Another $250 million was received earlier this month. Receipt of the remaining $950 million is contingent on as-yet-undisclosed project milestones.

Faraday has had a rough time trying to keep its bank accounts from drying up over the past year. That struggle reached a critical point as far back as January 2017, when …read more

Source:: Business Insider

      

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