Faraday Future’s EV factory spending down, reportedly looking to raise $1 billion

Faraday Future’s troubles intensified over the past few months and as we reported earlier this week, it resulted in dozens of employees jumping ship.

Nonetheless, the company is apparently still investing in its factory under construction in Nevada, where its investment has now reached $174 million, though at a slower pace.They are now reportedly trying to raise a $1 billion round to complete the construction.

Nevada Governor’s Office of Economic Development (GOED) confirmed this week that FF spent $14 million during the first quarter 2017.

The GOED judged the company’s progress at the site to be satisfactory:

“FF is making satisfactory progress to support the determination that the Project is a Qualified Project.”

They received $206,000 in abatements from the state during the period as part of the deal to bring the factory to Nevada.

While money apparently kept going to the project during the last quarter, the construction site wasn’t overly active. GOED’s report states that there was a peak of 25 construction workers at the site this year.

Earlier this year, there was nothing done aside from grading, but they said that they were moving forward with construction at its factory in Nevada. They say that they are still aiming to bring their first vehicle to production in 2019, but it would be surprising considering the early stage of construction at the plant.

One thing is clear is that they need money to build the factory. Now Bloomberg reports that they are looking to raise $1 billion independently from their main backer, Jia Yueting from LeEco:

“Jia, who has invested over $300 million of his own money in Faraday, will not be putting up any more capital, the person said. The company is targeting large scale investors such as sovereign wealth funds and hopes to complete the funding in the next couple of months, according to the person.”

They reportedly started meeting investors, but they are facing competition from other EV startups trying to raise large amounts to secure electric vehicle manufacturing capability, like Lucid Motors, which last we heard was working on a $700 million round for its factory in Arizona.

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