The Faraday Future Intelligent Electric Inc (NASDQ: FFIE) stock price climbed 31.5% after revealing that it had secured $135 million in funding via definitive financing agreements with investors willing to fund the company so that it can achieve its goal of starting production of its FF 91 luxury EV in March 2023.
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The EV company noted that once it receives the monies promised by the investors who agreed to buy its convertible notes, it would kick off the implementation of its seventh and last milestone, which is the execution of Standard Operating Procedures (SOPs) before it starts manufacturing its FF 91 EV.
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Faraday Future has set up the manufacturing facility, including all the necessary equipment. It has deals with suppliers, which will allow it to start and maintain the production of its FF91 luxury EV, which is targeted at wealthy buyers who want to be chauffeured around in a car that is more like a limousine than a traditional sedan.
Starting at $182,000, the Faraday Future FF91 is not cheap and competes with luxury vehicles from well-established brands like Bentley, Mercedes and Rolls Royce. Some have questioned whether the company has what it takes to take on these luxury giants most wealthy people prefer.
With all the financing in place, Faraday Future can start manufacturing its FF91, and it is at this time people will have a good chance of testing the final product, which will be delivered to customers. The company intends to produce about 400 first-edition vehicles, all of which have been reserved by eager customers.
The latest funding round was led by Senyun International Ltd., which has previously provided funding to Faraday Future. Other investors were Acuitas Capital, ATW Partners and their affiliates. The company also took the opportunity to amend some of the unfair terms in previous convertible notes to ensure that all investors are on equal footing.
Faraday Future’s Global CEO, Xuefeng (XF) Chen, expressed his gratitude regarding the timely funding commitments saying that they gave him confidence that the company would start production activities in March 2023 as planned.
*This is not investment advice.
Faraday Future (FFIE) stock price.
The Faraday Future (FFIE) stock price climbed 31.48% higher to trade at $1.42, from Friday’s closing price of $1.08.
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