Electric Carmaker Faraday Future Looking for $1 Billion Funding
EV maker Faraday Future is looking to raise $1 Billion in funding to secure its existence and future plans since the main backer China-based LeEco has run into financial trouble. The startup has begun identifying and meeting potential investors and plans to select advisers to help keep the company afloat.
LeEco, which is controlled by Jia Yueting, has been suffering ever since it tried expanding into multiple business ideas leading to a cash crunch. The business tried its hand in the EV manufacturing, smartphones, TVs, Netflix kind of service and car-hailing service too. Such widespread expansion has led to the business empire struggling with unpaid bills and fundraising issues.
Jia put in over $300 million personally into the Faraday but will be unable to do the same in furthermore, which has led to the company looking for large scale investors in hope of completing the funding in the next few months.
In January, Faraday unveiled its 1,050 Horsepower FF91 EV, which it said was the world’s fastest EV. They even went ahead and shot a video of FF91 outracing Tesla Model S and showed it at an event in Las Vegas. Meanwhile, construction of the plant has been affected with a key contractor requesting additional payments.
In the meantime, the company’s plant construction has been affected due to non-payment of additional payment to a key contractor. This has reportedly led to company scrapping plans of a Calfornia-based auto plant to keep the main focus on Las Vegas.