Faraday Future has sold its Los Angeles headquarters in a desperate effort to stay afloat after dispute with their former main investor Evergrande. The investor backed out of a $2 billion investment deal at the end of last year.
“As with the sale of the Las Vegas property, the sale of our Gardena HQ is part of our optimization of business strategies as we direct all of our resources at our core goal of delivering FF 91 later this year,” John Schilling, Faraday Future’s director of communications said in an email, confirming the sale.
The headquarters were sold to a subsidiary of real estate firm Atlas Capital on Mar. 8 and the selling price is still unknown. A former employee familiar with the sale speculated that the sale landed somewhere around $10 million.
The sale is one of many drastic measures the startup has had to undertake since the break-up with Evergrande. Just last week, Faraday Future announced that it is selling the 900 acres of land in Las Vegas and the company also recently decided not to bring back hundreds of employees who had been on unpaid leave.
The EV startup once planned to build a $1 billion factory in Las Vegas, where it would produce the company’s electric luxury SUV, the FF91. It canceled those plans in 2017, hoping to commence production at their smaller factory in Hanford, California. The company has made a few prototypes of the FF91, but it has been unable to start production due to the clash with Evergrande.
Those hoping to buy the electric SUV might need to put their plans on hold as the startup still needs close to $500 million in order to get the FF91 into production. In the meantime, lawsuits from suppliers and contractors are piling up. At least 11 companies are individually suing the startup for a total of more than $80 million worth of unpaid bills.
Featured photo credit to Faraday Future