EV Startup Faraday Future To Raise $600 Million In Funding

On Monday (August 15, 2022), Faraday Future Intelligent Electric Inc. announced that it will raise funding of $600 million. As it works to launch its FF 91 premium car later this year. The company will receive an initial commitment fund of $52 million as part of a new financing agreement.

Due to escalating material prices, EV entrepreneurs that promised to disrupt the automotive industry by employing a technology-heavy approach to their car designs are now frantically trying to get new lines of credit and reduce costs.

The FF 91 electric vehicle was being tested at Faraday Future's manufacturing site in California, according to the company's CEO Carsten Breitfeld. The manufacturer of electric vehicles stated that it was actively seeking "significant additional near-term funding" from investors both domestically and abroad as it planned to begin shipping vehicles in the third or fourth quarter.

In place of Vice President of Manufacturing Matt Tall, who will be departing the company, Faraday Future announced on Monday that Mathias Hofmann, head of global supply chain, will temporarily handle manufacturing operations at its Hanford, California factory.

After CEO Breitfeld told Reuters a month earlier that it would be able to launch the car without the need for more funding, the EV company noted the need for more funds to launch its FF 91 model in a regulatory filing in July.

One of the numerous electric vehicle (EV) startups that went public through blank-check mergers is Faraday Future. This market has slowed this year as a result of regulatory scrutiny and the subpar share performance of firms that went public using this method.