- A SPAC is a shell company that raises money through an initial public offering to buy an operating entity, typically within two years
- Breitfeld, who joined the Los Angeles-based company as CEO last year added that the company will deliver its first electric luxury SUV, the FF 91, nine months after securing funding
As per a report by Reuters, the chief executive of EV startup Faraday Future said that it plans to close a deal soon to go public through a reverse merger with a special-purchase acquisition company (SPAC). Carsten Breitfeld said that the startup is working on such a deal and will be able to announce something hopefully quite soon said the report. Breitfeld did not comment on who Faraday is negotiating with or when a deal would close
A SPAC is a shell company that raises money through an initial public offering to buy an operating entity, typically within two years. The report added that Breitfeld, who joined the Los Angeles-based company as CEO last year added that the company will deliver its first electric luxury SUV, the FF 91, nine months after securing funding. Its volume production will begin 12 months after the deal.
Use a contract manufacturer in Asia
As per the report, Faraday also said that it wants to raise $800 million to $850 million to launch the FF 91. Initially, it will build the vehicle at its plant in Hanford, California. Then, it will use a contract manufacturer in Asia with which Breitfeld said Faraday has signed an agreement. Breitfeld declined to name the company.
The report added that , Faraday burned through $2 billion in cash. Its founder Jia Yueting finalized his personal bankruptcy filing in June. As per the report, Breitfeld said Jia no longer owns stock in Faraday. Breitfeld is a former BMW BMWG.DEexecutive. He co-founded Chinese EV startup Byton. Breitfeld left Byton in early 2019. The company suspended production in July to reorganise.
