On December 23rd, Faraday Future (FF) announced that it has completed a new round of funding of $30 million, following its $30 million financing in September.
FF stated that the funds will be used to drive the development of the company and its "Faraday X" (hereinafter referred to as FX) strategy. It is understood that FX's strategy aims to launch mass market models in the US market with "twice the performance and half the price" to fill the structural gap in the US AIEV market and promote the company's overall development strategy.
According to FF, the first batch of FX prototype cars are expected to arrive in Los Angeles by the end of this month and will be sent to FF's Hanford factory in California for product development and testing. In addition, two prototype cars will also be showcased at the FX Strategy's latest major developments and next steps briefing held in Las Vegas from January 5th to 7th, 2025.
FF stated that in this $30 million financing, the first $7.5 million has been prepaid in the fourth quarter of this year, and the remaining $22.5 million is a new financing commitment (hereinafter referred to as "new financing"). The forms of new financing include unsecured convertible notes ("Convertible Notes") and warrants to subscribe for the company's newly issued ordinary shares ("Warrants"). Among them, the conversion price of convertible notes is $1.16 per share, and the exercise price of warrants is $1.392 per share, which can be adjusted according to the agreement. The common stocks corresponding to these convertible notes and warrants have not been registered and are subject to trading restrictions, so they cannot currently participate in trading.
On the same day, FF founder Jia Yueting posted on Weibo that this round of financing is FF's second recent $30 million funding round. Although not a lot of money for car manufacturing, it is crucial for FX's "bridge car manufacturing model" of "four light, four fast, and five empowerment". This funding will be used to ensure that the FX prototype vehicle can complete research and development testing work such as FF's technology empowerment of FX as planned, integrate the supply chain, expand the FX production line at FF ieFactory California, and accelerate the production of the first FX vehicle by the end of 2025.
Jia Yueting also said, "In the past six months, under the management of strengthening cost reduction and efficiency improvement, we have carefully planned and arranged every fund, striving to spend every fund wisely
It is worth mentioning that this is FF's second $30 million financing commitment in nearly three months.
According to the Daily Economic News, in September of this year, FF announced that it had received $30 million in financing commitments from investors in the Middle East, the United States, and Asia. The new financing commitment includes $7.5 million from the previous financing and $22.5 million in new investments in the form of convertible notes and warrants to purchase additional shares of the company's common stock. On October 31st, FF received the full net financing amount.
Regarding the acquisition of the second financing commitment, Matthias Aydt, CEO of FF Global, stated that this funding will lay a solid foundation for the next stage of development of FF and its FX brand.
On September 20th Beijing time, FF's second brand, FX, was officially launched, and it was clearly stated that two new cars priced between 20000 and 50000 US dollars would be launched.
According to the plan, the first phase of the FX brand will launch two models, FX 5 and FX 6. As the first model under the FX brand, FX 5 is a large space sport AIEV aimed at the mainstream market, with an expected price range of $20000 to $30000; The FX 6 will be a family AI luxury ultra large space vehicle, with an expected price range of $30000 to $50000.