Faraday’s future on shaky ground as EV production delayed again – TechCrunch
Faraday Future has delayed production of its flagship FF91 electric vehicle due to a lack of cash and supply chain issues, the company declared in a regulatory file.
The struggling EV startup turned public company said the start of production and first deliveries of its FF 91 EV in the United States are now expected in the third or fourth quarter of 2022.
It is possible that the company’s lack of cash will completely derail the electric vehicle. Faraday Future warned in the filing that it was trying to raise additional capital to fund its operations through the end of the year.
“Any challenges in supplier commitments, delays in ramping up capacity or labor at the company’s manufacturing facility in Hanford, California, or in sales commitments and service, rising material prices, or continued global supply chain disruptions may further increase the need for additional capital to launch the FF 91 Series,” the company said in the filing. “In addition to the FF 91 Series , substantial additional capital will be required to fund operations, research, development and design efforts for future vehicles.”
Faraday Future has had a tumultuous journey since its inception in 2014. The company sneaked out at a glitzy event in January 2016 that unveiled the FFZero1, a futuristic single-seat electric vehicle concept car. But he was never able to turn the splash and hype into a real product.
The company has had a long string of controversies, which only seemed to get worse after becoming a publicly traded company in July 2021 through a merger with Property Solutions Acquisition Corp. Just months after its public debut, a report on short sellers by J Capital alleged that Faraday Future had made a number of inaccurate statements.
An internal review conducted by a special committee of directors and involving the expertise of an accounting firm and independent legal counsel soon followed. This internal investigation prompted Faraday Future to reorganize its board of directors, cut the salaries of two top executives and suspend at least one other.
Two months after Faraday Future’s internal investigation determined that employees had made inaccurate statements to investors and that its “corporate culture did not prioritize compliance enough,” the Securities and Exchange Commission states United has subpoenaed several leaders to appear.
The US Department of Justice has also requested information related to the SEC investigation.