Electric Vehicle Startup Faraday Future Secures $2 Billion in Funding
【Summary】Financially troubled luxury electric vehicle startup Faraday Future (FF) confirmed a major investment this week, which will help keep alive its dream of producing its first mass-market electric vehicle, the FF 91.
LOS ANGELES – Financially troubled luxury electric vehicle startup Faraday Future (FF) confirmed a major investment this week, which will help keep alive its dream of producing its first mass-market electric vehicle, the FF 91.
The news of the new funding was first reported in December. However, at the time, FF did not reveal the investor's identity, saying only that it is a Hong Kong-based firm, which was revealed as Season Smart Ltd.
On November 30, 2017, Season Smart entered into an agreement to invest $2 billion in electric the vehicle startup. So far, Season Smart has paid $800 million.
In a filing on Monday, Evergrande Health Industry Group Ltd (0708.HK), a subsidiary of property developer China Evergrande Group (3333.HK), said it will buy the 45 percent stake in Faraday Future from Season Smart, as part of the group's diversification into high-tech sectors.
After the takeover, Evergrande Health will pay the remaining balance to Faraday.
Also as part of the deal, Yueting (YT) Jia, founder of FF, will be officially be taking on the role of Faraday Future's Global CEO.
FF will use the funds to finalize the development and delivery of its first production vehicle the FF 91 to both U.S. and China markets. The investment will also help FF to expand its product pipeline, develop new technologies and grow its business rapidly in the global marketplace, including building manufacturing facilities in Hanford, California and in Guangzhou Nansha, Guangdong Province, China.
The Faraday Future FF 91
FF launched in 2015 with the promise to deliver an electric vehicle with the performance of a Tesla and advanced technology including autonomous driving. The company lured top talent including former executives from BMW.
Last spring, FF hired former BMW exec, Stefan Krause as chief financial officer. However, Krause abruptly left the company last fall and recruited FF employees to open his own electric-car startup EVelozcity, which prompted an intellectual-property lawsuit.
The FF91 electric vehicle is full-size luxury EV crossover and Faraday Future's first production vehicle and flagship model. According to the company, the FF 91 can go from 0-60 mph in 2.39 seconds while delivering a 378 mile-range.
The FF91 will also include self-driving technology and all-electric power. It's also equipped with over 30 smart sensors and a motion-enabled 3D LIDAR that enables valet parking, facial recognition, and other advanced technology.
The company is headquartered in Los Angeles with R&D centers and offices in Silicon Valley, Beijing, Shanghai and Guangzhou.
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