Struggling EV startup Faraday Future will undergo a restructure that will see embattled CEO Jia Yueting finally step down, Pandaily reported on Tuesday.
Citing a statement released by FF on Monday, Pandaily, which follows tech news coming out of China, reported that the EV startup’s restructure will likely see it form a partnership.
FF is currently linked with two firms based in China. One is Evergrande Group, a conglomerate that is attempting to expand into auto manufacturing. The other is a video game company called The9.
Jia Yueting
As for Jia, he will reportedly focus on repaying his creditors, both private and company related, via a trust fund seeded with his own shares in FF. The sale of some of Jia’s FF shares plus a planned IPO of FF will provide the fund with enough cash to repay the debts, according to Pandaily.
FF’s troubles date back all the way to 2016 when Jia announced that another venture of his, Chinese tech giant LeEco, was experiencing a cash crush. FF subsequently stopped work on a planned $1 billion plant in Nevada and started to look for additional investors.
Since then the company has secured a small plant in California and started pre-production of its first model, the FF91 crossover, which was revealed in early 2017 and originally due on sale last year. FF is currently supported by a bridge loan secured in April as it seeks additional investment to get the FF91 into production.
