(Reuters) – Faraday Future Intelligent Electric Inc said on Monday the electric vehicle startup will raise up to $600 million in funding as it looks to deliver its FF 91 luxury car later this year.
As part of the new financing facility, the company will receive an initial funding of $52 million. As of August 9, its cash balance was $52.2 million.
Electric vehicle startups that promised to disrupt the auto industry by using a technology-intensive approach to vehicle design are now scrambling for new cash lines And cut costs due to rising commodity prices.
Faraday Future’s California manufacturing plant is nearing completion and is testing the FF 91 electric car, CEO Carsten Breitfeld said.
The electric car maker said it was working with the U.S. and Faraday Future said its global supply chain chief Mathias Hofmann would temporarily receive “substantial additional near-term funding” globally as it hopes Deliveries begin in the third or fourth quarter. Oversees manufacturing operations at its Hanford, Calif., facility, replacing Matt Tall, vice president of manufacturing, who is leaving the company.
The electric car company said in July that it needed more cash to launch the FF 91 model. In a regulatory filing a month later Chief Executive Brightfield told Reuters it did not need additional funding. This car can be launched.
Faraday Future is one of many electric vehicle startups to go public via blank-check mergers in a market that has slowed this year due to proper regulatory scrutiny and underperforming stocks of companies going public via the route.
The company also said some suppliers have recently requested expedited payments and other terms and conditions, in part because of their financial situation.
(Reporting by Akash Sriram in Bengaluru; Additional reporting by Praveen Paramasivam; Editing by Shounak Dasgupta and Arun Koyyur)
