In a challenging landscape marked by only fifteen deliveries of the FF91 on December 24, the urgency for a strategic push on the second brand, FX, is increasingly palpable for Jia Yueting and his company, Faraday Future (FF). This comes in the wake of limited traction in securing consumer acceptance and sales for their flagship product, placing immense pressure on the company to pivot its strategy quickly.

On December 23, Faraday Future made an announcement regarding its financial maneuvers, revealing the completion of another cash financing round, amounting to $30 million, shortly after raising the same amount in SeptemberThis recent funding is anticipated to facilitate advancements in the development of the FX brand, showcasing the company's commitment to its long-term strategy amidst a tumultuous backdrop.

While the specifics of the investors behind this funding haven’t been disclosed, filings with the Securities and Exchange Commission (SEC) surfaced, identifying V W Investment Holding Limited as one of the contributing investors

This independent investment entity is associated with FF Global Partners, which hints at support from established financiersFurthermore, previous communications from FF have positioned V W as a related party to the company's longstanding equity stakeholders, hinting at a layered network of financial backing.

Breaking down the $30 million infusion, $7.5 million has already been prepaid as of the fourth quarter, while the remaining $22.5 million is earmarked as a new financing commitment, structured through unsecured convertible notes and warrants for future equity acquisitionsThe convertible notes set the conversion price at $1.16 per share, while warrants set the exercise price at $1.392 per share, with options to adjust these terms as neededNotably, as of market closing on December 23, shares of FF's stock traded at $1.11, emphasizing the volatility and challenges surrounding its stock value.

Jia Yueting, the founder of FF, expressed that this round of financing marks the second $30 million investment recently acquired by the company

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The immediate use of funds includes ensuring the prototype development of the FX vehicles, integrating supply chains effectively, and scaling operations at the FF ieFactory in California to support the new FX production lineThe ambitious aim is to roll out the first FX vehicle by the end of 2025, enhancing the portfolio with cutting-edge technology.

In September, Faraday Future had announced that $30 million in financing commitments were secured from investors in the Middle East, America, and Asia, with the Master Investment Group from the UAE being a notable participant in that roundBy the end of October, FF confirmed that the full net amount had been receivedThird-quarter financial disclosures indicated a total asset value of around $449 million, against liabilities amounting to $292.3 million, leading to an estimated book value of $156.7 million.

In the same month, the brand's designation of “Faraday X” (FX) was finalized, encompassing a mission to deliver "twice the performance at half the price," thereby targeting the mass consumer market specifically within the AI electric vehicle sector

Jia Yueting outlined goals of positioning FX akin to Toyota within the burgeoning landscape of AI-driven electric vehiclesInitial offerings under the FX brand will include two models, FX5 priced between $20,000 and $30,000, and FX6, ranging from $30,000 to $50,000, to be constructed using pure electric and range-extended technologies.

The infusion of capital appears to hasten the advancement of FX, with plans set to announce business progressions at the upcoming Consumer Electronics Show (CES) in the U.Sfrom January 5 to 7, where initial prototypes of the FX will be showcasedEarlier updates indicated that the first FX prototype was scheduled to arrive in Los Angeles by the end of December, followed by its subsequent development and testing at the FF manufacturing facility in Hanford, CaliforniaMoreover, earlier in November, the inaugural batch of FX prototypes reached FF’s headquarters in China before being transported to Los Angeles.

Faraday Future’s strategy for the FX brand entails leveraging a lightweight operational model focused on asset-light manufacturing principles

The two planned models will be produced following modifications to the production line at FF’s California plant, alongside collaborations with original equipment manufacturers (OEMs) to facilitate cost reductionsRegarding concerns over the sufficiency of funding for production and delivery of these vehicles, FF’s management has committed to maintaining transparency by regularly updating milestones and fulfilling promises made to stakeholders.

To enhance the establishment of the FX brand, FF recently announced significant personnel changes, appointing Gu Lei, an established expert in vehicle development and safety technology, as the head of the global EV R&D institute for FXGu Lei brings a wealth of experience from his previous roles, including significant tenures at Ford, where he focused on vehicle safety structures and occupant protection systems, as well as contributions to multiple Chinese automotive firms like Chery and BAIC.

On October 23, in a candid dialogue with Chinese media, Jia Yueting disclosed that he still has around $2 billion of debt in China, stating a determined plan to repay it within two years as he contemplates returning to his roots