Faraday Future raises more than $ 1 billion during its IPO through a SPAC scheme. The company has once again announced the launch of the FF91, although this time it ensures that it will arrive in a year. Do we believe it?
The Faraday Future project has grabbed a lot more headlines than it really deserved, although the truth is that the vast majority of them have been negative. This project, founded and led by Jia Yueting, former CEO of LeTV, has been in the dark since it was announced with great fanfare at the end of 2015.
Summarize the erratic trajectory and radical rudder changes that this project has undergone in recent years it is impossible task. There have been so many twists and turns in these few years that its brief history seems more typical of a soap opera script.
Although the latest news they have starred in should be considered very positive, the truth is that we have our reservations about it, because they have basically gone back to doing what they always did, raising hundreds of millions of dollars from new investors without any signs of this being done. it will translate into visible results. Well, the development of its only model presented so far has not finished yet. and the rest of the announced models have not even been seen in prototype form.
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Like so many other electric start-ups, Faraday Future has resorted to a SPAC scheme through which it has merged with a company created with the sole function of being able to go public. So after more than 5 years of announcements we can say that the only thing that has really marketed this project are the shares of the company.
The really funny thing is that despite tons of bad news generated in the recent past, the price of Faraday Future securities not only did not plummet when they were put up for sale, but it generated enough interest from investors as to slightly raise its price and thus raise just over 1,000 million dollars. Which is nothing but what the company was looking for with this movement, more income.
If these funds are really going to be used for the brand to launch the Faraday Future FF91 or any of the other announced models, we do not know, but it is highly probable that, as on previous occasions, just serve as fuel so we can keep the project open a little longer, of which we do not really know if it is still operational or if it is only alive on paper.
As a new public company, Faraday Future now is required to publish its results quarterly, so it will not take too long to know the true status of the project.