Faraday Future has avoided getting kicked out of its Los Angeles headquarters – for now.
The struggling electric vehicle startup reached a deal April 2 with its owner, Rexford Industrial, to stay in the building provided it meets a few conditions. If the startup violates any of the terms, Rexford has the right to trigger a payment request within 48 hours and can boot Faraday Future if it fails to pay. If Faraday Future makes its payments, it will be able to stay in the building until September 2025, when the lease expires.
The resolution comes as Faraday Future is once again strapped for cash.
The company reported having just $8.5 million in cash as of September 2023. This is the most recent figure available because the company is late in submitting its annual financial report for 2023, in part because that it deferred payments to third-party audit consultants, according to an April 2 regulatory filing.
Rexford first sued Faraday Future in February, claiming he missed multiple lease payments totaling nearly $1 million. Now, the EV startup must pay $312,524.46 for what is due by April 30. She must pay this month’s rent of $305,617.08 by April 15. And she must pay the following month’s rent of $312,419.63 by May 6.
Faraday Future was not as fortunate in avoiding trouble in another case, filed in January, by the owner of an office it rented in San Jose. There, BXP Realty claimed that Faraday Future stopped making lease payments in December and owed $127,311.16. Faraday Future does not appear to have formally responded to the lawsuit, and in early March a default order was entered. It’s unclear if Faraday Future still occupies the space.
techcrunch
