Faraday Future risks losing its Los Angeles headquarters for non-payment of rent


Troubled electric vehicle startup Faraday Future owes the landlord of its Los Angeles headquarters nearly $1 million after missing the last two months of rent, TechCrunch has learned.

The owner, Rexford Industrial, filed a previously unreported complaint. trial against Faraday Future this week in Los Angeles Superior Court that accuses the startup of missing its January and February rent payments, as well as associated maintenance fees and taxes. Rexford claims the startup owes him $917,887.26 and is seeking possession of the building. An attorney for Rexford declined to comment.

Faraday Future is also being sued by the owner of an office it has been renting in San Jose since 2022. This unpublished complaint, filed by BXP Realty in Santa Clara Superior Court on January 31, alleges that Faraday Future has stopped performing rent payments in December, leading to an outstanding balance of $127,311.16.

BXP claims it applied Faraday Future’s $99,518 security deposit to the balance in January and asked the company to pay the remainder; the startup did not pay this amount. As a result, BXP is looking to start the startup from the premises. A lawyer for BXP did not immediately respond to a request for comment.

“We are actively working with the owners of our offices in San Jose and our headquarters in Gardena and are in negotiations to resolve the situation amicably and as quickly as possible,” a Faraday Future spokesperson said in a statement. communicated.

The missed payments are the latest sign of trouble for the startup, which only recently began shipping its first luxury SUVs to its employees and hand-picked celebrities, after nearly 10 years and more than $3 billion. dollars in losses. Faraday Future warned shareholders in a December regulatory filing that its ongoing fundraising efforts continue to face major obstacles and that without an infusion of cash, the startup may not have “sufficient resources” to continue operating and “will need to will likely file for bankruptcy and its assets will likely be liquidated. 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 as of the end of September 2023. The startup is also under investigation by the Securities and Exchange Commission.

Faraday Future has weathered a series of crises over the years as it attempted to develop and market its luxury electric SUV, the FF 91. In 2019, after a messy breakup with one of its backers, Faraday Future sold the Los Angeles headquarters to generate cash and re-rented them to a subsidiary of the New York real estate company Atlas Capital. Rexford took over the lease of Faraday Future in 2022 after buy the building for $64.3 million.

Faraday Future managed to survive long enough to merge with Property Solutions Acquisition Corp. in 2021, a transaction which in net Faraday Future $1 billion in new funding. But Faraday Future passed the intervening years mired in more drama centered around its billionaire founder, Jia Yueting.

This story has been updated to include a comment from Faraday Future.


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