The EV startup Faraday Future issued on Monday a new business update saying it received all equipment required for the start of production (SOP) while pointing it for the fourth quarter of the year.
The company added that “certain equipment needed to fully ramp production is currently scheduled to arrive later this year”not affecting the timing or rate of the production ramp up.
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Faraday Future CEO Carsten Breitfield commented, “The ieFactory California team is producing high-quality production-intent vehicles for testing and validation, and I am very pleased to see the progress we have made readying the production area for SOP”.
“I want to thank our team at Hanford and our outstanding contractors. Together we are building a truly world-class, luxury automotive plant,” he added.
“We noted earlier some challenges with supply chain issues which affected our FF 91 timeline. We have announced the successful raising of $52 million in convertible note commitments and continue financing discussions with multiple parties, but delays in our anticipated timing to close these potential transactions have also impacted our launch timing,” continued Dr. Breitfeld.
Furthermore, the EV maker warned that the timing and amount of additional funding raised “could impact the timing and rate of the production ramp”.
“The Company has taken actions to preserve its cash position, including reducing spending, extending payment cycles, and implementing other similar measures. As of August 26, 2022, the Company’s U.S. cash balance was $47.2 million and restricted cash was $1.5 million. The timing and amount of additional funding raised could impact the timing and rate of our production ramp, which could substantially impact expected production volumes,” the CEO said.
Last week, the company announced a joint partnership with Gameloft, a leader in the gaming industry, to feature two of its models inside Asphalt 8 and 9, its most downloaded mobile racing game.
Recently, the company said it entered into a definitive agreement for a new financing facility with total potential funding of $600 million in a convertible secured notes structure.
The EV startup will receive an initial $52 million of committed funds and said it “continues to have active discussions with multiple capital providers for potential significant additional near-term funding”.
Earlier this month, the company’s major shareholder FF Top Holding executed “a non-binding term sheet for a proposed convertible term loan facility” to raise up to $600 million. Last week, the company filed a 8-K form saying it will delay the start of production and the first deliveries of the FF91, the first model for the California-based company.