Eltrys reports that struggling EV company Faraday Future owes its Los Angeles headquarters landlord roughly $1 million after skipping two months’ rent.
This week, Rexford Industrial, the landlord, sued Faraday Future in Los Angeles Superior Court for missing its January and February lease payments, maintenance fees, and taxes. Rexford alleges the business owes $917,887.26 and wants the premises. Rexford’s attorney denied comment.
The landlord of Faraday Future’s San Jose headquarters since 2022 is suing it. BXP Realty filed a previously unreported case in Santa Clara Superior Court on January 31, alleging that Faraday Future ceased paying lease payments in December, leaving a $127,311.16 debt.
BXP allocated Faraday Future’s $99,518 security deposit to the amount in January and urged the business to pay the rest. The startup did not. BXP wants to kick the startup out. BXP’s counsel did not reply to a request for comment.
“We are actively working with the landlords of our offices in San Jose and our HQ in Gardena and are in negotiations to resolve the situation amicably and as quickly as possible,” a Faraday Future spokeswoman stated.
After almost 10 years and $3 billion in losses, the business finally started selling luxury SUVs to staff and hand-picked celebrities. The missing payments are the latest indicator of problems. In a December regulatory filing, Faraday Future warned shareholders that its fundraising efforts continue to face major obstacles and that without a cash infusion, the startup may not have “sufficient resources” to continue operating and “will likely have to file for bankruptcy protection and its assets will likely be liquidated.” Faraday Future went public in 2021 after combining with a special-purpose acquisition firm.
On September 30, 2023, Faraday Future had $8.5 million in cash. The Securities and Exchange Commission is investigating the startup.
Faraday Future has endured many difficulties in developing and shipping its premium electric SUV, the FF 91. After a rocky separation with a financial backer, Faraday Future sold its Los Angeles offices to raise cash and then leased them back from Atlas Capital’s affiliate in 2019. Rexford took over Faraday Future’s lease in 2022 after purchasing the building for $64.3 million.
Faraday Future survived to combine with Property Solutions Acquisition Corp. in 2021, receiving $1 billion in investment. Jia Yueting, Faraday Future’s wealthy creator, has caused more commotion in recent years.
Faraday Future may lose LA HQ for unpaid rent.
