Moribund EV startup Faraday Future could receive up to a $350 million lifeline to help launch its first vehicle, according to a regulatory filing.
The company said Monday it has signed a deal with an affiliate of Yorkville Advisors Global for an equity line of credit up to $350 million. The financing, which entails an initial commitment of $200 million from the New Jersey-based investment firm, will be “key” to producing the company’s long-awaited first model, the FF91 sports car. As of Monday, Faraday Future had a market cap of $234 million.
“This new financing facility is a key part of our strategy to raise the funds we need to get the FF 91 on the road and in the hands of users as quickly as possible,” Faraday Future CEO Carsten Breitfeld said in a statement.
Faraday has faced numerous challenges in delivering the car to customers, including the removal of founder and former CEO Yueting Jia as an executive officer and investigation by the U.S. Securities and Exchange Commission into charges that Faraday misled investors.
Yorkville has also provided financing for EV startups Canoo and Lordstown Motors.
Faraday Future said the 1,050-horsepower car has a battery range of 350 miles and can accelerate from 0 to 60 mph in less than 2.4 seconds – impressive figures comparable to supercars such as the Rimac Nevera – if the company can deliver on its goal.
“Our FF 91 vehicle program is advancing, and recent testing and validation results have exceeded our targets,” Breitfeld said Monday.