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Faraday Future first unveiled its FF 91 130 kWh crossover vehicle at the beginning of 2017, during the US Consumer Electronics Show.
American start-up electric vehicle company Faraday Future Inc is set to go public through a merger with blank-check firm Property Solutions Acquisition (NASDAQ: PSAC) in a deal estimated to be worth $3.4 billion. According to news outlet Reuters, the company confirmed on Friday its entrance into the public market.
Consequently, PSAC stock surged over 34% during Thursday’s premarket to trade around $17.46. The company was founded last year, since then Property Solutions Acquisition stocks have jumped approximately 34.44% and 30% in the past three months and year to date respectively according to metrics provided by MarketWatch.
The firm has approximately 25.74 million outstanding shares. On the other hand, Faraday Future has been in the market as a private company for the past six years.
Faraday Future before the Deal with Property Solutions
The firm has been pushing to construct construction sites in different states but rather affected by the limited resources. However, with a boost of $3.4 billion, the company is now able to construct a manufacturing site and also have more new models in the market.
Faraday Future first unveiled its FF 91 130 kWh crossover vehicle at the beginning of 2017, during the US Consumer Electronics Show. Back in 2019, Faraday Future announced plans to partner with Chinese video game company, The9, to develop a minivan named the V9. However, the minivan was exclusively for the Chinese market.
Previously, Faraday Future has been involved in other Capital fundings. Notably, the company managed to raise $1.5 billion in funding from an undisclosed investor from Hong Kong back in 2018. Later that year, the company received $854 million from Evergrande Group for a 45% stake in the company.
Notably, Faraday Future is mostly focused on sport utility vehicles including the formula E championship. Having found a niche, Faraday Future is seeking to fully capitalize on it as the global market favors emerging technologies amid the coronavirus market recovery.
The firm is however entering a market that is heavily dominated by the likes of Tesla Inc (NASDAQ: TSLA), Nio Inc (NYSE: NIO), and also Xpeng Inc (NYSE: XPEV). Its success will largely be determined by the kind of products it introduces in the market and at what price.
Most electric vehicles are still termed costly for the average income earners in most jurisdictions. However, investors particularly the new retail traders’ frenzy seem much interested in the emerging technologies and might make the company thrive under the competitors. Mind you, there is a huge global market for the electric vehicle industry as most jurisdictions advocate for their adoption in the few years to come.