If its money that Faraday Future wants to avoid losing face and having to file for bankruptcy, they may have just gotten the money they need from India’s largest automotive group, Tata Motors. According to a short blurb issued by our Chinese motoring friends over at Gasgoo earlier today (Nov. 13, 2017), it looks like the beleaguered electric startup sold 10 percent of its shares in exchange for $900 Million. If this is true, that means Tata Motors values Faraday Future at a whopping $9 billion.
This all comes on a week of negative press coming from itself and speculative reports with documents pointing to plans from CEO Jia Yueting, that bankruptcy was in Faraday Future’s cards before the year’s end.
We reported just a few days ago that Faraday Future’s financial troubles were so bad that caterers they partnered with for a couple of their launch events had to resort to suing FF for breach of contract because of non-payment to the tune of $100,000.
Additionally, a damning press release from the company just a few days ago slammed its former CFO, Stefan Krause, for malfeasance and possibly breaking the law in securing funds for the company.
Terminating the employment of Stefan Krause was a result of his actions in hindering FF’s fundraising efforts. FF will continue our full efforts in expediting the fundraising process.
Also, a couple of documents procured from TMT post point to a financing plan from Jia Yueting that would prevent debtors from procuring past debts and shoring up the company until a fresh cash injection, like this one from Tata Motors, could keep the company afloat although they mentioned it was American investors they originally planned. Doing so would mean Jia would most likely be out of CEO, and a major embarrassment for the 44-year old Chinese tech founder. According to CNBC, a Leco Spokeswoman denied these claims.
Faraday Future’s main car, the yet to be built FF91 boasts a 131 kWh battery with a range of 378 miles. Faraday Future’s special high-speed charger allows them to charge FF91 at a rate of 500 miles of range per hour. The FF91 is capable of a 0-60 MPH run in 2.39 seconds.
If this investment from Tata Motors is true, we’ll be keen to see how Faraday Future invests all that money in building a product as soon as possible.
