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Struggling EV startup Faraday Future owes its Los Angeles headquarters landlord nearly $1 million after not paying rent for the past two months, TechCrunch has learned.
The landlord, Rexford Industrial, filed a previously unreported report trial The suit was filed this week in Los Angeles Superior Court against Faraday Future, accusing the startup of missing January and February lease payments, as well as related maintenance fees and taxes. Rexford claims the startup owes him $917,887.26 as a result and wants to take possession of the building. An attorney for Rexford declined to comment.
Faraday Future is also being sued by the landlord of an office it leases through 2022 in San Jose. The previously unfiled complaint, filed by BXP Realty in Santa Clara Superior Court on Jan. 31, alleges Faraday Future stopped making lease payments in December. Resulting in an outstanding balance of $127,311.16.
BXP says it applied Faraday Future’s $99,518 security deposit to the balance in January and asked the company to pay the balance; The startup did not pay that amount. As a result, BXP is looking to launch a startup from the campus. A lawyer for BXP did not immediately respond to a request for comment.
The missed payments are the latest sign of trouble for the startup, which recently started shipping its first luxury SUVs to employees and select celebrities after nearly 10 years and more than $3 billion in losses. faraday future caution Shareholders in a December regulatory filing said its ongoing fundraising efforts are facing major hurdles, and without cash flow, the startup may not have “sufficient resources” to continue operations and “potentially “It will have to file for bankruptcy protection and its assets will be liquidated.” Will probably be destroyed.” Faraday Future became a publicly traded company in 2021 after merging with a special purpose acquisition company.
Faraday Future reported only $8.5 million in cash at the end of September 2023. The startup is also under investigation by the Securities and Exchange Commission. A spokesperson for Faraday Future did not immediately respond to a request for comment.
Faraday Future has survived a series of crises over the past few years as it attempted to develop and ship its luxury electric SUV, the FF91. In 2019, after a messy breakup with Faraday Future, one of its financial backers Los Angeles headquarters sold to generate cash and leased it from a subsidiary of New York real estate firm Atlas Capital. Rexford takes up Faraday Future lease in 2022 buying a building For $64.3 million.
Faraday Future managed to survive long enough to merge with Property Solutions Acquisition Corp. in 2021, a transaction that reticulated Faraday Future gets $1 billion in fresh funding. But Faraday Future has spent the intervening years caught in more drama Focuses on its billionaire founder, Jia Yueting.
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