Artist’s impression of Faraday Future’s proposed plant in Hanford, California
Electric-car maker Faraday Future has received an emergency injection of $14 million to move its FF 91 luxury electric car closer to market.
The rescue funds come in the form of a loan from Innovatus Capital Partners, after Faraday Future pledged its California-based headquarters as collateral.
For now, the $14 million will keep the company afloat while it works to raise much larger sums of cash.
In the meantime, Faraday Future executives have slashed some of the company’s ambitious earlier goals, and plan to move its production facility from Nevada to California.
Faraday Future has leased a new manufacturing site in Hanford, California, 200 miles north of its headquarters in southern California.
The 1-million square-foot plant is described as a “turnkey” facility; it eliminates Faraday Future’s need for millions of dollars to continue construction of its planned factory outside Las Vegas.
However, Faraday Future will continue to hold that site for the foreseeable future; it says it plans to complete the facility at a later date.
So far, Faraday Future has spent $120 million on the Las Vegas plant, although only some sewer infrastructure has been installed thus far.
On August 5, 300 of the company’s employees volunteered to begin the process of cleaning up the newly-leased facility—a sign Faraday Future has set its sights on a more achievable manufacturing goal.
Faraday Future’s latest leadership changes include the addition of Stefan Krause and Ulrich Kranz, both previously with BMW.
The German auto executives seem to have brought a dose of reality to the company’s sprawling vision at a significant time.
The electric-car maker’s Chinese backer, LeEco, has confessed it is running out of cash, and its CEO and founder has stepped down to focus full-time on the electric-car offshoot.
For now, Faraday Future will continue to prepare the new factory for production as the current tenants prepare to leave this November.
The electric-car maker plans “significant movement” to ramp up its activities in early 2018 and hopes to employ 1,300 workers over three shifts in the near future.
Most importantly, Faraday Future still hopes to raise $1 billion in investment following the emergency loan to keep the lights on;.
Receipt of new capital would help the company bring the FF 91 to market in 2018.