Faraday Future Looks for Financial Saviors

November 02, 2018 at 9:33 AM

Struggling electric car startup Faraday Future Inc. says it is looking for debt and equity financing to revive its hope of launching its first car by the end of this year.

Founded by Chinese billionaire Jia Yueting, who now serves as CEO, the 4-year-old company has been backpedaling on its goals since it announced grandiose plans in December 2015 to open a $1 billion factory in Nevada that would begin making EVs in 2017 and eventually produce seven models at a combined annual rate of 150,000 cars.

Now the company has retained Stifel, Nicolaus & Co. as its financial advisor to seek new financial saviors, Reuters reports. Faraday has been scrambling since a pledged $2 billion investment in July by China’s Evergrande Group soured in September.

In August, Evergrande announced even more expansive plans for Faraday. It predicted the company would open five plants in China and be making five million EVs per year a decade from now. Evergrande made an initial investment of $800 million in Faraday but balked at going further.