On April 4, Faraday Future reached an agreement with its landlord, Rexford Industrial, to not move out of its Los Angeles headquarters for the time being. It is worth mentioning that in February this year, Rexford Industrial sued Faraday Future for rent arrears. At that time, Faraday Future was accused of owing rent and related maintenance fees and taxes for January and February.
This time, the latest agreement reached by both parties requires Faraday Future to pay $312,524.46 in arrears before April 30 this year, and pay $305,617.08 in rent for this month before April 15. In addition, the next month’s rent of $312,419.63 must be paid before May 6. If Faraday Future fails to meet any of these terms, Rexford Industrial has the right to immediately demand payment within 48 hours. If Faraday Future does not pay, Rexford Industrial can evict Faraday Future. Conversely, if Faraday Future pays on time, the lease between the two parties can expire until September 2025.
Interestingly, this is not the first time that Faraday Future has been exposed for rent arrears. In January this year, Faraday Future also faced a lawsuit from its San Jose office landlord, BXP Realty, accusing it of not paying rent in December last year, with an outstanding balance of up to $127,311.16. At that time, in response to this news, Faraday Future replied that it is actively negotiating with the landlord of the San Jose office and Gardena headquarters in a friendly manner to solve the current problem as soon as possible. Recently, there have also been reports in the market that Faraday Future needed to submit regulatory documents on April 2, but the company postponed the submission of its 2023 annual financial report. Part of the reason is that Faraday Future delayed payment to third-party audit consultants. From these matters such as rent arrears and delayed payments, it is not difficult to see that Faraday Future is still short of funds.
In recent times, in addition to the pressure of funds, Faraday Future also received a delisting warning. It is understood that Faraday Future’s stock price has been below $1 from November 9 last year to December 27, in violation of Nasdaq’s listing rules. According to Nasdaq’s listing rules, Faraday Future needs to have the closing price of its Class A common stock reach or exceed $1.00 per share for at least 10 consecutive trading days within the next 180 days, that is, before June 25 this year, in order to continue to trade on the Nasdaq Capital Market. If Faraday Future fails to meet the minimum bid price requirement before June 25 this year, Nasdaq will issue a delisting notice to it.
Things here have not been settled yet, and Faraday Future has recalled all vehicles delivered since 2023 due to the problem of the airbag warning light.
After 10 years of building cars, Faraday Future has spent a huge amount of money, but the delivery volume has only delivered 11 vehicles. But even with a small number of deliveries, Jia Yueting still believes in his dream of building a car.
Today, Jia Yueting also released a video, saying that he will not give up or yield, dedicated to all Faraday Future futurists, and thank you all for your support for Faraday Future. Having a dream is naturally a good thing, but in the current increasingly fierce competition in new energy vehicles, Faraday Future needs a continuous source of funds to survive. With just a double-digit delivery volume, it is still very difficult to obtain external funds.
