Shortly after Faraday Future hit the headlines when co-founder Nick Sampson stepped down, the electric car manufacturer has revealed that it is exploring various strategic options, seemingly in a bid to stay alive.
In a statement issued to Reuters, Faraday said that it was exploring debt and equity financing and that it “can now welcome potential investors from around the world.”
While the company is in desperate need of additional investment, it remains to be seen if any companies or individuals will be willing to invest in a company that’s been plagued with as many problems as Faraday.
Faraday Future’s longevity hit dire straits last month after it emerged that the startup is trying to end a deal to sell a 45 per cent stake to China’s Evergrande Health Industry Group.
Evergrande claims that Faraday has already spent around $800 million that was given to it and that the automaker manipulated its board of directors regarding a deal to advance the carmaker additional money.
On the other hand, Faraday Future asserts that it finalized a deal with Evergrande in 2017 that would see a 45 per cent stake sold in exchange for $2 billion. Faraday says that in July 2018, Evergrande agreed to speed up remaining payments totalling $500 million this year. It’s alleged that Evergrande has been holding back payment in an attempt to gain control of the company and its intellectual property.
Faraday Future got a reprieve last week when a Hong Kong arbitration court ruled that it could look for investment from sources other than Evergrande Health.
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