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Geely and Foxconn to join forces to produce electric vehicles Faraday Future
Founded in 2021, Faraday Future showed ambitions to become Tesla’s main competitor in its early stages of development, but by October 2021, its founder had to go through bankruptcy and move to a lower rank. Faraday Future expects to start a new phase in an alliance with Geely and Foxconn as a public company.
Image source: Reuters
To raise additional capital, Faraday Future will merge with Property Solutions, a public company that raised $ 200 million in a public offering last July, Reuters notes. After merging with Property Solutions, Faraday Future will also gain entry to the public capital market, but the Chinese automaker Geely should receive a large block of shares through direct investment in the amount of $ 775 million. The aggregate capitalization estimate reaches $ 3.4 billion, of which about one billion US dollars Faraday Future will be able to use at its own discretion.
Reuters also reports that Geely, with the participation of Foxconn, will be able to organize the production of electric vehicles Faraday Future in China. Geely has a lot of experience in serial production of vehicles, and Foxconn recently announced its desire to act as the creator of the “reference platform” for the production of electric vehicles. Longtime partner Apple also has extensive connections among electronics suppliers, which have a very high proportion of EV design. Foxconn representatives declined to comment on their participation in the Faraday Future project.