Electric vehicle startup Faraday Future which has been on life support for the past couple of years, now they received a surprise cash injection from a mobile gaming company called The9 Limited. The gaming company is willing to contribute up to $600 million to the joint venture, Faraday has said that they will use the money to make a new car in China called V9.
The new car would be based on FF91, the ultra-luxury electric SUV which the company debuted at CES 2017. The joint venture said that they will build up to 300,000 EVs, the first pre-production model will launch in 2020. The news about the deal just came after a few days when Faraday had sold its Los Angeles headquarters in a bid to generate short-term cash.
The news of both the companies working together is surprising because Faraday had a quite complex relationship with Chinese real estate firm Evergrande. The company promised $2 billion but terminate the deal shortly after Faraday blew through the initial $800 million payment more quickly than expected. Further, the deal was financially collapsed when the company’s founder Jia Yueting remove himself as director of various offshore companies. However, by the end of 2018, the dispute resolved.
Faraday’s asset is the FF91 pre-production vehicle which is going to take a lot of financial resources. The vehicle has hit speeds of up to 155 MPH during trials but caught fire during a Faraday future event, setting back development. Now the company has to get back to the production side after the settlement with Evergrande. Although the company has lost its many employees and engineers to Rivian, which recently released electric pickup truck and SUV.
The company will face difficulties to hire employees and to fill those positions. It would be a miracle to see Faraday’s EVs after all that the company has gone through.