Chinese state-owned capital from the city of Zhuhai has invested RMB 2 billion($300 million) in Faraday Future's (FF) latest funding round, Sina Tech reported Wednesday, adding that the investors could also bring policy support to the company.
Geely is also interested in participating in FF's new round of financing with an intention to invest $30 million to $40 million, the report said.
In December 2020, FF set up a company in Zhuhai called FF (Zhuhai) Co. The company, whose legal representative is Jia Chentao, is wholly owned by FF's Hong Kong entity (FF Hong Kong Holding Limited), and its business includes the sale of new energy vehicles.
With FF's own competitive products and technology coupled with its relatively mature branding capabilities and the support of Zhuhai's state-owned capital, FF founder Jia Yueting is expected to return to the CEO position, the report said.
In September 2019, Jia Yueting resigned from the CEO position in favor of Chief Product and User Officer (CPUO), and released his personal bankruptcy restructuring plan in the US in October.
With the accelerated development of new energy vehicles in China in 2020, the Chinese market has become a source of hope for FF to be on track again.
Although FF is expected to receive financial and policy support from Zhuhai, facing the gradually mature Chinese new energy vehicle market and the brand recognition gradually formed by users, FF, which takes the high-end route, still faces huge challenges.
Faraday Future said to file for US listing in two weeks at earliest
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