EV Startup Faraday Future Gets Bridge Loan
Electric car startup Faraday Future Inc. says it has arranged as much as $225 million in bridge financing to enable it to complete development of its first model.
The California company says the loan from Chicago-based Birch Lake Associates LLC will enable it to launch its flagship FF 91, a 1,050-hp crossover vehicle (pictured). Some of the funds will be used to pay past-due invoices from about 60% of its vendors.
In March, Faraday secured as much as $600 million in funding from The9 Ltd., a Shanghai game operator. The9 will become a 50% partner in a joint venture with Faraday to locally produce and sell electric cars in China under The9’s management.
The partnership’s first model will be the V9, a variant of the FF 91. Faraday also is contributing its use right to land in China for EV production.
Faraday has been able to secure new funding after settling a dispute in January with its largest investor, Evergrande Health Industry Group Ltd., over control of the company.
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