Faraday Future is hoping to eventually enter the public stock market by taking a shortcut provided by a SPAC agreement.
According to chief executive Carsten Breitfeld, a deal is currently being thrashed out with an unnamed potential partner for the enterprise, in which a reverse merger will take place through a special-purchase acquisition company (SPAC).
SPAC organizations[1], also sometimes referred to as blank-check firms, are shell companies formed to undergo the typical Initial Public Offering (IPO) process -- but the overall aim is to use funds raised to buy other operating entities, usually within a year or two.
If an acquisition is pursued but the funds required haven't been fully raised by an IPO, sponsors of the SPAC agreement are at liberty to lend the company additional cash. In comparison to traditional routes to an IPO, a SPAC agreement can be far quicker.
See also: Tesla to develop a $25,000 electric car within three years[2]
Breitfeld said on Monday that the firm hopes to "announce something hopefully quite soon," but no further details have been disclosed.
As reported by Reuters[3], the California-based electric vehicle (EV) startup also announced plans to deliver its first production-ready vehicle, the FF 91, nine months after a deal is agreed.
In total, Faraday Future -- founded in 2014 but yet to produce a commercially-viable EV -- hopes to raise between $800 and $850 million to produce the model.
The FF 91, as noted by sister site CNET[4], was met with enthusiasm at CES 2020 and its development, on the whole, has resulted in an eye-turning car.
However, it may be less the vehicle, and more the company, that could scupper the EV's future. The company's debt and