Faraday Future has sold its headquarters in Gardena, California, and is leasing it back for now.
Real estate company Atlas Capital purchased the site on March 8 and is leasing it back to the electric car startup, which originally bought it in 2014 for $13.2 million, The Verge reported on Wednesday, citing documents relating to the sale and comments made by Faraday Future spokesman John Schilling. A sale price wasn’t mentioned.
Faraday Future on March 13 said it was reducing its non-core assets as it seeks capital to put its first model, the FF91 crossover SUV, into production. As part of the efforts, the company is selling a 900-acre plot of land north of Las Vegas that was the proposed site of a $1 billion vehicle plant. Faraday Future is thought to be seeking $40 million for the site.
Faraday Future plant in Hanford, California
The company also cut staff numbers and wages late last year. From an original staff count of close to 1,000 a year ago, just 250 remain today, according to The Verge.
Faraday Future had hoped to have its FF91 in production at a former tire plant in Hanford, California, by the first half of this year, though the company has said it will need to raise “substantial” capital in order to do so. One bright spot is that it managed to reach a new agreement with key investor Evergrande Group in January, an agreement that is expected to speed up its equity and debt financing efforts.
Evergrande, a Chinese conglomerate focused in real estate, retail and healthcare, on Saturday said it wants to be a major force in the EV sector globally and has promised to launch its first model in June. However, it isn’t clear if Evergrande is planning its own brand or will realize its EV goals through startups like Faraday Future. Evergrande currently owns 32 percent of Faraday Future, as well as 51 percent of rival EV startup NEVS.