Tech startup Faraday Future says misinformation campaign hurt fundraising efforts

93
2
Tech startup Faraday Future says misinformation campaign hurt fundraising efforts

Due to the global economic downturn, tech startups are finding it hard to raise venture capital to fund their projects. The recession and slow economic growth are forcing startups to lay off some of their employees and freeze hiring. Los Angeles, California-based Faraday Future Intelligent Electric said yesterday that a misinformation campaign has hurt its fundraising efforts as the electric-vehicle startup looks to start production of its FF 91 luxury electric car.

Threats that began with lawsuits have escalated to threats of physical violence and even death threats, the company said, and it is working with law enforcement to investigate.

In August, some of the company's employees wrote to the board and shareholders to request the removal of executive chairperson Susan Swenson, suspecting she had organized attempts to push the company into bankruptcy and restructuring. Faraday Future has hired a law firm to conduct a thorough independent external investigation, and found that the allegations were without merit, Reuters reported.

The news of fundraising comes a month after the startup raised new funding for the production launch of its FF 91 electric SUV. The company said in August that it has successfully executed a definitive agreement for a new financing agreement, which has total potential funding of $600 million in a convertible secured note structure.

In July, Faraday Future delayed the launch of its flagship electric SUV FF 91 after warning that it was short on cash. A Los Angeles-based electric vehicle startup, which went public in July 2021, was hoping to raise $325 million to fund its operation through the end of the year. After many months of struggle, the startup was able to raise funding from investors.

Faraday Future is a design and technology company that develops global solutions that re-imagine transportation, content, and ownership, founded in 2014 by Tony Nie. With the recent success of Tesla, Faraday hopes to raise new funding through the IPO to expand its operations and global footprint. Faraday joins a growing list of high-profile companies that have gone public via the so-called special purpose acquisition companies SPACs.