The electric car startup born in 2014 in California has never yet gained manufacturer status. In six years, billions of dollars have been invested in a project still at the starting point.
Here we are! Faraday Future is preparing to launch its first model, the FF 91. For the occasion, the startup has pocketed an envelope of 350 million dollars in fresh money from a New Jersey fund, Yorkville Advisors. The optimism of the teams is radiating, Faraday Future will hit the road under the body of a large 100% electric luxury sedan in a short time.
This is a great story, at least in theory. The practice may not be so simple. For more than 8 years now, the Faraday Future name has never gone beyond that of a concept car, a company that has risked bankruptcy on numerous occasions and which, in an equally surprising , is already publicly traded and listed on NASDAQ.
Billions of dollars… and ?
We can't count the number of rounds that have been made and the billions of dollars invested. In 2017 alone, Faraday Future raised $2 billion as its Chinese owner LeEco brought Evergrande Health Industry Group into its capital. In 2019, it was the turn of The9 Limited to inject $600 million, while Evergrande had not injected the full amount promised two years before.
We are only talking about years since 2017 and the arrival of Geely in 2021 was a new lifeline and source of massive investment. But again, nothing since. Its new investment of 350 million euros in November 2022 does not bode anything very concrete either, as it has become normal to see the company pushing back its deadlines and being dependent on venture capital to survive. Faraday Future definitely needs money, even being listed.
The picture is pretty clear when you look at its stock price. It plummeted 95% in less than two years. The valuation of Faraday Future then playing a roller coaster. From more than $4 billion in 2017, it fell to less than $250 million last week and less than $160 million at the close on Friday November 18. Suppliers, investors, future customers, economists… all stakeholders are waiting for Faraday Future at the turn, but many are diverting their attention – their patience having reached its limits.
Tesla, Lucid Motors, Nio or even BYD did not wait so long and their capital is not as diluted as that of Faraday Future. According to Geely, its new owner, a model should arrive by the end of the year but it will again be the FF 91, whose concept car dates back to 2017, let us remember. A second model is already planned, smaller and more affordable. It will be called FF 81 but is not expected to hit the roads before 2024. Some journalists, accustomed to the setbacks of the brand, then had fun in their articles to meet in 2028 “at least”.< /p>