Faraday Future said it has secured up to $100 million in funding as the struggling EV startup tries to launch its long-delayed first model, the FF 91.
The near-term funding agreements include up to $40 million in convertible notes and warrant exercise payments, and up to $60 million in convertible notes from Hong Kong holding company Senyun International.
The announcement comes one month after the company’s latest warning it is running out of money. Despite the infusion, Faraday warned of future cost reductions and layoffs.
Faraday said in a statement Monday that it is seeking more money to fund operations “through the end of 2022 and beyond” and “continues to have active discussions with capital providers to fund the production and delivery of the FF 91.”
The automaker also said it has reached an agreement for its largest shareholder to withdraw a lawsuit against the board. FF Top Holding LLC sued the company earlier this month, alleging that certain board members conspired to push the company into bankruptcy “for their own personal gain.”
The terms include changes to the board’s membership and size. Adam He, chief financial officer for holding company Wanda America Investment Group, will replace Sue Swenson, executive chairman of the board, and former Nevada Lt. Governor Brian Krolicki.
CEO Carsten Breitfeld called the agreement “a major accomplishment and an important step forward for Faraday Future and all our stakeholders.”
“We can now focus our effort on building the FF 91,” Breitfeld said in a statement.
The company went public in July 2021 by merging with SPAC Property Solutions Acquisition in a $3.4 billion deal. Ten months later, the EV maker removed founder and former CEO Yueting Jia as an executive officer amid an ongoing investigation by the U.S. Securities and Exchange Commission into charges that Faraday misled investors.
In addition to the FF91, Faraday has said it plans to open a factory in China mid-decade to build two more models: an FF 81 sedan and FF 71 smart last-mile delivery vehicle.