Faraday Future has had a rough couple of years. Launched in 2014, the electronic car company was stated to be a promising Tesla competitor. However, because of depleting funds, the company had to scale back its productions and line-up, on a number of occasions. While many expected Faraday Future to go down under, it looks like the company has finally found a new investor, just at the right time.
It was reported that Hong Kong-based Evergrande Health, is investing about $2 billion (approximately Rs 13,700 crore) in Faraday Future for a 45 percent stake in the company. While Faraday Future was initially in talks with Season Smart Limited in November, Evergrande Health seems to have taken over the deal, along with an approval from the Committee on Foreign Investment in the United States.
The $2 billion investment will come to Faraday Future in installments. Season Smart has already invested $800 million (approximately Rs 5,500 crore). Evergrande Health will finish of the deal by investing $600 million (approximately Rs 4,100 crore) in 2019 and the remaining $600 million in 2020.
Having 45 percent shares makes Evergrande Health the highest stake holder in the company, followed by the existing investors who own 33 percent shares. The remaining 22 percent of shares have been allotted to the employees as part of an incentive program. This also means that the Jia Yueting, will no longer be owner of the company, but will still operate as Faraday Future’s global CEO.
Faraday Future plans on using the huge investment for the development and production of the FF91, which is a fast and luxurious electronic car the company showcased at CES 2017. In a press release, Faraday Future states, “FF will continue to use the committed funds to accomplish our top priority – finalizing the development and delivering the first production vehicle, FF 91 to both US and China markets.”
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The company also plans on taking this investment as an opportunity to grow in the global market, “The investment will also support Faraday Future to expand its product pipeline, develop cutting-edge technologies and grow the business rapidly in the global marketplace, including our manufacturing facilities in Hanford, California and in Guangzhou Nansha, Guangdong Province, China.”