Los Angeles, California – The electric vehicle company Faraday Future is having a tough time because it hasn’t paid rent for its main office in Los Angeles for the past two months. The company owes its landlord, Rexford Industrial, almost $1 million. Rexford Industrial has taken this matter to court, asking for the money and to take back the building. They prefer not to talk about the lawsuit.
Faraday Future is facing a similar problem with another building it rents in San Jose. The landlord there, BXP Realty, says the company stopped paying rent in December and now owes over $127,000. BXP tried to use Faraday Future’s security deposit to cover some of the debt and asked for the rest, but the company still hasn’t paid. BXP wants Faraday Future out of the building, but their lawyer hasn’t commented on the situation.
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These issues show Faraday Future is in financial trouble. Despite starting to deliver its first luxury SUVs to some customers after nearly a decade and losing over $3 billion, the company warned its investors in December that it might not have enough money to keep going. It might even have to declare bankruptcy if it can’t get more funding. Faraday Future went public in 2021, hoping to improve its finances.
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By the end of September 2023, Faraday Future had only $8.5 million left. The U.S. Securities and Exchange Commission is also investigating the company. Faraday Future hasn’t commented on these issues.
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Faraday Future has been through many difficult situations over the years while trying to make and sell its FF 91 luxury electric SUV. In 2019, after separating from a financial supporter, it sold its Los Angeles office to get some money and then rented it from a company owned by Atlas Capital. Rexford Industrial took over the lease in 2022 after buying the building. Despite these challenges and a significant funding boost in 2021, Faraday Future has continued to face problems, especially concerning its founder, Jia Yueting.
