Faraday Future announced funding of up to $100 million to secure production of its first electric vehicle, the FF 91. Of the total $100 million in funding raised, $40 million was short-term funding in convertible notes and exercise warrants payments. Meanwhile for $60 million in convertible notes from Hong Kong parent company Senyun International.
The announcement came after the electric vehicle startup previously ran out of money. Despite getting additional funds, Faraday will still make savings by reducing costs and layoffs in the future.
In his statement on Monday, Faraday said he was looking for more money to fund their operations through the end of 2022 and beyond. Apart from having active discussions with capital providers to fund the production of FF 91.
The automaker also said it had reached an agreement for its largest shareholder to withdraw the 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.”
Requirements include changes to membership and board size. Adam He, chief financial officer for parent company Wanda America Investment Group, will replace Sue Swenson, executive chairman of the board, and former Nevada Lieutenant Governor Brian Krolicki.
CEO Carsten Breitfeld called the agreement “a major achievement and an important step forward for Faraday Future and all of our stakeholders.”
“We can now focus our efforts on building FF 91,” Breitfeld said in a statement.
Previously the FF 91 was officially certified by the US Environmental Protection Agency (EPA) as an eco-friendly car with a range rating of 381 miles (613 kilometers). In its press release, the EV startup says this range rating is based on the FF 91 model complete with 22-inch wheels.
Faraday Future claims the rating is a significant improvement from the company’s previous estimate of 300+ miles and makes the FF 91 “a long-distance leader in the luxury electric vehicle market.” The company seems to have easily forgotten about the Range Lucid Air Dream Edition, an electric luxury car that has an EPA of 520 miles.
Faraday Future confirm 381-mile EPA range certified for FF 91 electric SUV