Faraday Future (NASDAQ:FFIE), the electric car startup, revealed Tuesday its plans to raise $100 million in debt. This strategic move comes as the company strives to overcome previous funding challenges that caused several delays towards the release of the automaker’s flagship vehicle, the FF 91 Futurist.
The company said it will also use the new debt funding to ramp up production.
"This round of financing commitments is expected to provide the Company with capital to support our FF 91 delivery milestone, sales and service system development, as well as support our near-term production ramp-up goals," Xuefeng Chen, the global CEO of Faraday Future, said.
In April, FFIE delayed the initial deliveries of the FF 91 Futurist by two months, at the time saying the company would be relying on "substantial additional financing."
The electric automaker has been struggling with a cash crunch and a board reshuffle following a governance dispute with one of its largest shareholders, FF Top Holding. Last November, Faraday Future raised doubts about its ability to continue as a "going concern." However, the company managed to secure enough funds in February to begin the vehicle's much delayed production.
In the latest debt financing round, FF Global Partners (FFGP), a group consisting of current and former executives of the company, has emerged as a key player by pledging $80M as the anchor investor. Joining them in this investment are Metaverse Horizon Limited and V W Investment Holding.
Shares of FFIE are down 14.55% in mid-day trading on Wednesday.