Faraday Future (FF), the electric car start-up aiming to challenge Tesla, held an “Evolution Strategy Communication Meeting” at the Los Angeles headquarters on Nov. 12.
Co-founder and CEO Jia Yueting stated during the meeting that he is willing to take out 64 percent of personal equity to motivate employees, and another 40 percent of equity shares to implement an incentive program for partners and outstanding talents in order to reach for an IPO in 2020.
Regarding the dispute with its main investor Evergrande, Jia stated that FF can accept Evergrande’s investment on one condition: that FF stays in control.
For the past few weeks, there has been an ongoing dispute between FF and Evergrande on the topic of funding. Jia accused Evergrande of not fulfilling its funding obligations, which includes both buying the company with the 45 percent stake for $860.2 million and paying two $600 million installments in 2019 and 2020.
As a result, the company was forced to take drastic measures just to keep their head above water. Many employees had their salaries cut by 20 percent and others were laid-off. Some of those out of work are now attempting to crowd-fund money to support their families as Faraday gets back on its feet.
But things are looking up for the start-up. FF may secure a $900 million funding package from EVAIO Blockchain, that could potentially free the company from cash pressure and risk of bankruptcy.
The funding would give the troubled company more time in mass-producing and commercializing its electric vehicles. Earlier this month FF signed a contract with U.S. investment banking firm while exploring future strategies.