In a statement electric vehicle startup Faraday Future’s Chief Executive Carsten Breitfeld said, it is aiming to go public through a reverse merger with a special-purchase acquisition company (SPAC).
“We are working on such a deal … and will be able to announce something hopefully quite soon,” said Carsten Breitfeld of the potential SPAC deal.
He declined to comment on the company Faraday is negotiating with or when a deal would close.
Incidentally, a SPAC is a shell company that raises money through an initial public offering to buy an operating entity, typically within a span of two years. They have emerged a quick route to enter the stock market for companies, especially for electric vehicle startups.
Breitfeld, who joined Los Angeles-based Faraday Future in 2019 as its CEO, said, it aims to deliver its first electric luxury SUV 9 months after securing funding, with volume production beginning 12 months after such a deal.
Faraday stated it aims to raise $800 million to $850 million to launch the FF 91.
In the first phase it will build the FF91 at its Hanford plant in California; but ultimately it aims to use a contract manufacturer in Asia with which it has already signed an agreement.
Breitfeld declined to identify the company.
Faraday Future is among the more hyped electric vehicle startups. Its founder Jia Yueting finalized the filing of his personal bankruptcy earlier this year in June. Faraday has burned through $2 billion in cash.
Jia no longer owns any stock in Faraday, said Breitfeld. More than 50% of the EV startup is owned by employees through an executive partnership and an employee stock ownership plan.
Jia’s stake had been a “major blocking point” to bringing in other investors, said Breitfeld.
Breitfeld also acknowledged Faraday has struggled in the past with executing its business plan.
“Because of the history and sometimes the bad news of the company, not everyone is really trusting us,” said Breitfeld. “They want to see that we’ve become a stable company.”