EV startup Faraday Future is in talks with investors for up to $170 million in additional capital to set a goal of bringing the FF 91 electric SUV to customers in April 2023.
The Los Angeles-based company said it plans to begin production of the FF 91 at its manufacturing facility at the end of March 2023.
Faraday Future, which is struggling to raise funds to start production, announced Thursday that it has received a $30 million binding letter of intent from an existing investor.
Existing investors are also expected to provide funding to help produce the debut model, according to the company.
The latest at the company’s investor meeting comes after Faraday Future announced a management change earlier this week, dismissing two directors after a lengthy internal investigation into allegations of fraud. After resolving a dispute with the seeking investor.
Last month, Faraday’s board of directors decided to replace former BMW executive Carsten Breitfeld as CEO with Shuefeng Cheng, who now heads Faraday’s China division.
In November, the company delayed delivery of FF 91, saying it had “substantial doubt” about its ability to continue as a going concern.
Rising raw material costs and dry cash reserves are making investors question the health of EV startup balance sheets.
EV startups looking to revolutionize the industry with groundbreaking products are struggling as a slowing global economy and financing difficulties hit production schedules and deepen losses.
Faraday Future’s stock has fallen more than 90% this year to well below $1, and shareholders at a special meeting in November approved a proposal for a reverse stock split to comply with Nasdaq’s listing rules.