Faraday Future, the ambitious electric vehicle startup, is reportedly seeking a huge injection of funds from external sources, as its Chinese backers run into serious money issues.
The company has begun drawing up plans to procure around US$1 billion ($1.3 billion) in outside funding, a source has told Bloomberg.
To that end, representatives from Faraday Future have already begun meeting potential investors, primarily large sovereign wealth funds. The company also hopes to select an advisory team in the near future.
Despite being able to launch its FF91 concept car at this year’s CES in January, Faraday Future is facing financial headwinds.
Its primary source of funding so far has been Jia Yueting, the founder and CEO of LeEco, a large consumer electronics and streaming media company from China.
To-date, Jia has kicked in around US$300 million ($403 million) to start up and keep Faraday Future running, but LeEco has run into serious money problems, and further cash from Jia is unlikely.
This has been primarily due to overly hasty and ambitious expansion plans for overseas markets, such as India and the USA. In the last few months, it has fired most of its overseas staff, exited contracts to purchase land, and will no longer acquired TV maker Vizio.
Late last year, it was revealed that Faraday Future had hits own roadblocks. The company was forced to halt work on its massive car factory outside of Las Vegas, Nevada, as it had missed deadlines to pay contractors at least US$21 million ($28 million).
Executives at Faraday Future have, reportedly, recently tried to reassure employees that funding problems at LeEco will not affect on-going work at Faraday Future.