Electric vehicle (EV) firm Faraday Future is planning to go public by merging with a special-purchase acquisition company (SPAC), Reuters reported on Tuesday. A SPAC is a shell company with no commercial operations, formed to raise capital for an initial public offering. CEO Carsten Breitfeld, who joined Faraday Future in September last year, explained that the firm is working on a SPAC deal, without specifying any partners or time period.
In April, KrASIA reported that Faraday Future raised USD 225 million to kickstart the production of its first automobile, the FF 91. The electric luxury SUV premiered in January 2017 but stalled at the pre-mass production stage due to a lack of capital. Faraday Future earlier indicated that it needs up to USD 850 million to start producing the FF 91.
California-based Faraday Future was founded by Chinese entrepreneur Jia Yueting, who is also the founder of online video platform Le.com, formerly LeTV. Jia stepped down from his position as CEO in September 2019 and filed for bankruptcy in the United States one month later.
Though Faraday Future has been much hyped, the firm has struggled to raise funds for mass production. Other ambitious EV brands have also encountered challenges. In June, Nanjing-headquartered Byton suspended operations and filed for bankruptcy in North America and Europe.