Two years ago, investors got wet hands at the mention of the name Faraday Future. The company we described back then as “more mysterious Tesla competitors with a lot of money” was considered a serious challenger to Elon Musk’s company. Faraday Future was credited with more than annoying Tesla. The company was initially showered with investor capital, at least this impression was communicated to the outside.
Now it seems clear: The Faraday Future bubble is about to burst. The California startup, behind the Chinese Jia Yueting, needs money and not a little. The company needs around $ 500 million and that’s urgent. Because Faraday Future convertible bonds expire according to a report of the business portal Bloomberg in December in the amount of $ 400 million. If the financing of $ 500 million cannot be achieved, these bonds, together with interest (12%), have to be repaid – otherwise, there is a threat of failure.
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But that’s only part of the problem, as money is missing everywhere. One has about 100 million unpaid bills and in this context has to deal with lawsuits. Faraday Future has recently lost many high-ranking employees, including the recently hired COO and CFO Stefan Krause.