Faraday Future Intelligent Electric has postponed the start of production and deliveries of its highly anticipated debut vehicle until the “third or fourth quarter of 2022”, saying it needed additional capital to make the launch a reality, media reports said.
The Los Angeles-based electric vehicle startup, which went public in July 2021 in a merger with a blank check company, had previously said it plans to launch the battery-powered SUV as soon as possible this month. a Bloomberg report in the Detroit News said.
Founded in 2014, Faraday Future once promised to start making and selling the so-called FF91 SUV as early as 2018, but has been forced to delay delivery several times, the report said.
“The company needs additional funds to commercially launch the FF 91 and is currently seeking additional capital to fund its operations through December 31, 2022,” it said in a filing quoted by Bloomberg.
Faraday Future had previously said it would not need additional funds until after the vehicle was launched, the report said.
The company reportedly said in a slide deck for investors that it wanted to raise about US$325 million.
Bloomberg added that the delay came amid a deadlock between the electric vehicle startup and its founder, Jia Yueting. In late June, an affiliated shareholder group demanded the removal of a director from the startup’s board.
Faraday reportedly replied that the group had offered the director a $700,000 contract to have him step down.
On July 15, those shareholders said in a filing that they had offered Faraday a “at least $100 million” lifeline on the condition that the CEO resign. Several days later, the group accused the startup of not treating the offer “with the seriousness, urgency and fairness it deserves in light of” its financial condition, Bloomberg reported.