US company headed by Chinese investor Jia Yueting uses equity funding; it maintains first vehicle will make production next year
Sam Sheehan
20 December 2017

Electric car company Faraday Future has secured $1 billion (£747 million) worth of funding by selling off shares, in a move that newly appointed chief executive Jia Yueting claims will ensure its FF 91 model makes production before 2018's close.

According to Shanghai's Securities News, Yueting, who is the founder of Faraday Future and struggling Chinese technology firm LeEco, announced the results of the equity funding at an employee meeting. He also said that he would move into Faraday Future's leading position, filling a role that has been vacant for four years.

The news may come as a relief for Faraday Future's employees, most of whom are in the US, with their future having been cast into uncertainty with recent funding issues and the departure of high-level executives.

Only last month reports suggested Faraday Future had received £687 million in investment from Indian conglomerate Tata, but the company said: "the news is not true and hence we do not have any comment". US-based Faraday Future is supposedly worth about $9 billion (£6.87bn), meaning the claims for Tata’s investment would have bought it 10% of the company.

Will Faraday Future take Tesla's electric crown?

Prior to that, former Faraday Future chief financial officer Stefan Krause resigned in October and chief technology officer Ulrich Kranz’s contract was terminated. However, Faraday Future said that this had not impacted upon its ongoing research and development process.

The company has, at least, received more than 64,000 orders for its first model, the FF 91, which is a Tesla Model S rival.

Faraday Future was building a battery factory in Nevada, Texas, to handle the FF 91's production, but plans took a hit when construction contractor AECOM claimed a payment of $21m (£16m) was late. The company is now planning to refubish an existing plant in Hanford, California.

Despite these various issues, Yueting has maintained that his company will deliver its first customer FF 91 by the end of 2018. 

The FF 91 is powered by a 130kWh battery and uses Faraday Future's patented Echelon Inverter, which the company claims can transform more energy while using less space.

The FF 91 can gain 500 miles worth of charge per hour and comes with a home charger that can fill the battery to 50% in less than 4.5 hours at 240V. Faraday Future says it predicts the car will offer a range of more than 435 miles in New European Driving Cycle (NEDC) tests.

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Comments
5

13 November 2017

buys you what?

blueprints?

rubbish!

 

love the idea of new smaller companies that grows!

/EX

13 November 2017

that $900m gets you only 10% of a company that has yet to build a car, or allegedly pay its suppliers. Whatever the percentage is, I quite like the idea of the FF91 being redesigned and rebadged as a Jaguar.  

14 November 2017

Getting paid easily online every month by just doing easy work from home. I have just received a paycheck of $18572 from this job. I am a full time college student and just working on it for 2 to 3 hrs a day. This job is super awesome and its earnings are massive. Every person on this plannet can makes more income by follow this link.......

.....  www.jobstoday60.com

20 December 2017

Yueting did a runner from China after loads of LeEco's creditors demanded payment, now the company is teetering on the edge of bankruptcy, not sure hes the best choice for a chief exec.

21 December 2017

Design wise its more appealing than Tesla models. I really hope they can get this off the ground without risking quality and reliability. 64,000 orders is interesting and I expect that will grow rapidly to six figures one the factory is actually working. All that remains to be seen is the sticker price. They absolutely MUST undercut Tesla by 15,000 bucks - can they do it?

what's life without imagination

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