HANFORD — While the New Year started on a positive note, electric car startup Faraday Future continues to struggle financially.
While company officials said in December that they hoped to have funding issues solved within two or three months, it looks like that will not happen.
According to technology news website The Verge, 11 new lawsuits have been filed against Faraday by suppliers and contractors who say the company has not paid them for contracted services.
“In total, the companies are seeking nearly $80 million in owed payments, damages, and fees from Faraday Future,” The Verge reported.
The lawsuits — ranging from tens of thousands of dollars to millions of dollars — come from companies that provided a gamut of services to Faraday, including various staffing needs, basic office and technical work, vending machines, construction and equipment, marketing and computers and other electronics, among other services.
Total Western Inc., a California contractor that The Verge said provided construction and maintenance services to Faraday last year at both its Los Angeles headquarters and Hanford factory, is asking for around $1 million.
Reached by email Monday, Faraday spokesperson John Schilling said he could not comment on any pending lawsuits at this time.
Faraday seemed to be making some headway in December when the company and its main investor, Chinese real estate group Evergrande, came to a restructuring agreement that allowed Faraday to seek other investors.
Both sides had accused the other of failing to live up to the end of their respective bargains and the dispute led to arbitration in Hong Kong courts.
The cash-flow difficulties that arose resulted in layoffs, salary cuts, furloughs and executive departures at the company. The Verge reported on Feb. 26 that Faraday is extending the furlough, with no determinable end in sight.
Schilling told the Sentinel that the company initially placed the anticipated date of return for furloughed employees as March 1. He said Faraday has been “diligently pursuing a solution to the serious financial situation” and has been engaged in discussions with potential investors to raise both asset-based debt financing and equity funding.
“These funding efforts have taken longer than the company initially anticipated and therefore, FF must extend the furlough period for employees currently on furlough,” he said. “Employees will be contacted by HR during the month of March to discuss their individual situation and possible return dates.”
According to The Verge, Faraday needs hundreds of millions of dollars — possibly up to $500 million — in order to start production on its flagship vehicle, the luxury FF 91.
Amidst the alleged financial turmoil, Faraday Future has continued to post on several of its social media sites, including Facebook and Twitter.
The most recent of the posts on Feb. 27 includes a video of cold-weather testing on the FF 91 in Baudette, Minnesota.