Faraday Future Aims To Go Public Through A SPAC
On Monday Carsten Breitfeld, current CEO of Electric vehicle startup Faraday Future, announced it will go through a reverse merger with a special-purchase acquisition company (SPAC). Breitfeld is a former BMW executive and also co-founded Chinese EV startup Byton. (Left in 2019).
After a lot of initial hype, Faraday burned through $2 billion in cash and its founder Jia Yueting finalized his personal bankruptcy filing in June. Breitfeld said Jia no longer owns stock in Faraday (50% owned by employees). Jia's stake had been a "major blocking point" to bringing in other investors, he said.
"We are working on such a deal ... and will be able to announce something hopefully quite soon," Carsten Breitfeld said, but refused to say who he is negotiating with or when a deal would close.
Breitfeld plans to raise $800 million to $850 million to launch its first electric luxury SUV, the FF 91 (Interior seen above), planned to be released nine months after securing funding, with mass production beginning a year latter. The vehicle will initially be built in its plant in Hanford, California, but ultimately in Asia with a company Faraday has signed an agreement with which he again failed to disclose.
"Because of the history and sometimes the bad news of the company, not everyone is really trusting us," he said. "They want to see that we've become a stable company."