Faraday Future Forced to Sell Its Own Headquarters, Assets to Stay Afloat: Report
The company is also listing its 900-acre property north of Las Vegas, originally meant to be the site of a factory, on sale for $40 million.
Aspiring electric car manufacturer Faraday Future has reportedly sold off its own headquarters for some much-needed cash to prevent itself from going under in the wake of recent cashflow problems.
A source familiar to the matter allegedly told The Verge that Faraday Future accepted a $10 million offer from a subsidiary of New York-based real estate firm Atlas Capital for the building, located in Gardena, California, on March 8. Faraday Future is reportedly leasing this building from its new owners.
The Drive has contacted Faraday Future for comment on the claim that its headquarters has been sold, which if true, would mark the second major sale of land attempted by the company. Faraday Future announced on March 13 that its 900-acre plot of land north of Las Vegas, Nevada, originally meant to be the site of a factory that would cost over $1 billion, was also for sale for the sum of $40 million.
The automaker confirmed that it has relocated the planned production line for its high-performance electric FF 91 crossover to a plant in Hartford, California, once used by tire manufacturer Pirelli, but now leased by FF. At least one pre-production FF 91 has reportedly been completed, and a prototype raced at the Pikes Peak International Hill Climb, but the company is a long way off from launching series production of the model, as it faces financial problems stemming from its failed relationship with Chinese real estate giant Evergrande. Evergrande has since invested in Faraday Future rival NEVS, the successor to the Saab marque.
Many Faraday Future employees remain furloughed by a lack of funding, which the company has stated to be a problem it seeks to address in 2019. $500 million is reportedly needed to put the FF 91 into production, and approximately $80 million more would be required to stave off lawsuits the company faces from its suppliers for unpaid bills.
- RELATEDFaraday Future Investor Evergrande Wants to Launch Its Own EV in 2019The Chinese company will allegedly rely on Koenigsegg and Saab successor NEVS to make that happen.READ NOW
- RELATEDFurloughed Faraday Future Workers Still on Hold Despite New Investments: ReportThe electric car startup is still reportedly short on cash.READ NOW
- RELATEDEmbattled EV Startup Faraday Future Settles Dispute With Major InvestorFaraday now has a chance to rebuild after layoffs and a nasty legal battle.READ NOW
- RELATEDAre You Ready for a Self-Driving Electric Lotus SUV?Lotus CEO Phil Popham offers a glimpse into the future of Geely's latest acquisition.READ NOW
- RELATEDFord Will Split Electric Vehicle Manufacturing Between Mexico and United StatesMichigan gets the Mustang hybrid while Mexico will assemble Ford's unnamed electric SUV.READ NOW