Electric vehicle startup Faraday Future has applied for a U.S. IPO, which will hopefully lead to the company finally launching its first production model.
The California-based company, founded by Chinese entrepreneur Yueting Jia, will go public via a special purpose acquisition company known as Property Solutions Acquisition, Chinese media The Paper reported, as cited by Yicai Global today.
Within a year after Faraday makes its debut, the company will launch its EV luxury car, the FF91 in the Chinese and U.S. markets. Since Faraday’s inception, the car’s production has been halted a number of times on financing troubles and personnel changes.
According to multiple reports, the company needs $800 million to $850 million to secure enough funds to commence mass production of its FF91. Also, a report from CNBC earlier this year noted that the merger would be worth $3.4 billion, with Faraday expected to raise $1 billion in gross proceeds.
Last month, Faraday said it raised $100 million in debt financing led by Ares Management Corp. In April 2019, Faraday raised $225 million in bridge financing from U.S. asset management firm Birch Lake Associates.
Most importantly, it looks like Faraday’s financial woes are over; the company noted in its filing that it passed its 2020 financial audit. Jia, who had a debt restructuring plan approved by a U.S. court last May, filed for bankruptcy in October 2019.
In January, Reuters reported that Faraday was looking to establish a production plant in China and was in talks with the parent of Geely Automobile (OTC: GELYF; HKEX: 00175) regarding contract manufacturing.
By 2025, Faraday will target the production of 450,000 FF91s.
The listing is anticipated to occur in May on the Nasdaq.