Faraday miraculously keeps the engine running with another big lifeline

After crashing and burning multiple times over the last few years, the cash-poor EV startup Faraday Future received another lifeline to keep the engine running.

March 26, 2019

It’s been quite the trek for Faraday Future since the carmaker got everyone all revved up at CES 2017 when it debuted its flagship ultra-luxury e-SUV.

Shortly afterward, the company found itself cash poor — as it turns out, making an electric vehicle from scratch is really expensive (especially when you have Jia Yueting at the wheel). 

Now, days after Faraday sold its LA headquarters, The Verge reports the company has received another surprise lifeline in the form of a new 50/50 partnership with Chinese mobile video game company The9.

Hmmm, sounds familiar…

That’s because Faraday received a $2B lifeline back in 2017 from the Chinese real estate conglomerate Evergrande, before getting locked into a high-speed chase for control over the company that ultimately led to hundreds of layoffs.

The9 says it will contribute as much as $600m as long as Faraday promised to use the money to make a new car for the Chinese market by 2020 called the V9.

The 2 companies claim they will be able to make 300k cars per year — an odd estimate considering Faraday is still struggling to release the FF91.

Warning: Objects in mirror are closer than they appear

The9 said that the $600m will go only to the joint venture — not Faraday’s US operations — in 3 $200m installments all connected to some fairly ambitious checkpoints.

Once again, exactly the kind of goal-oriented payment plan that led to the blowout between Faraday and Evergrande.

Faraday Future now has to put the pedal to the metal as it faces the difficult task of hiring back the positions they laid off back in December — a road that could prove to be bumpy considering its track record. 

Join 1.5m+ professionals getting The Hustle daily news brief

Business and tech news in 5 minutes or less

100% free, no ads or spam, unsubscribe anytime


How'd Bezos build a billion dollar empire?

In 1994, Jeff Bezos discovered a shocking stat: Internet usage grew 2,300% per year.

Data shows where markets are headed.

And that’s why we built Trends — to show you up-and-coming market opportunities about to explode. Interested?

Join us, it's free.

Look, you came to this site because you saw something cool. But here’s the deal. This site is actually a daily email that covers the important news in business, tech, and culture.

So, if you like what you’re reading, give the email a try.

If you don’t like it, unsubscribe any time. Privacy policy.