After repeated ticket bouncing, when will Faraday Future’s first model FF91 be mass-produced?
Recently, many media reported that Faraday Future (FF), an electric vehicle start-up founded by Jia Yueting, is negotiating with Property Solutions Acquisition, which is expected to achieve a US stock listing through the merger of a special purpose acquisition company (SPAC).
Bloomberg quoted people familiar with the matter as saying that Property Solutions Acquisition, a SPAC, is currently seeking to raise $400 million in funding to complete the transaction. According to its estimates, the value of FF after the merger can be as high as $3 billion. After the news came out, the stock price of Property Solutions Acquisition has risen 21%.
FF has an urgent need for this merger. Since its establishment in 2016, FF’s road to car building has frequently hit walls. Car manufacturing is a capital-intensive industry, but FF was once suspended due to frequent debt problems. As early as the beginning of 2017, FF released the concept of its first electric car FF91. Four years ago, it has not yet achieved mass production.
Previously in October 2020, FF CEO Carsten Breitfeld revealed that FF hopes to raise US$800 million to US$850 million to achieve delivery and volume of FF91 Production; and in order to achieve the financing goal of, FF plans to enter the US stock market through SPAC transactions. Bi Fukang said: “We are working hard to reach a deal and we are expected to announce new news soon,” but he did not disclose the parties to be negotiated and the time to market.
Bi Fukang said that FF plans to deliver FF91 9 months after obtaining financing, and put it into mass production after 12 months.
Competition in the new energy vehicle industry is becoming increasingly fierce, and FF has been surpassed by many rising stars: in the “Hurun Global Unicorn List” in 2019, FF was awarded RMB 30 billion The valuation of FF ranks 57th in the world; in 2020, the market value of FF will shrinkTo 9 billion yuan, the ranking quickly fell to 331th. This time, whether FF can turn over through the merger and listing of SPAC, it needs time to verify.