Faraday Future has avoided being kicked out of its Los Angeles headquarters — for now.
The struggling electric car startup reached an agreement April 2 with its owner, Rexford Industrial, to remain in the building as long as it meets certain conditions. If the startup violates any of the terms, Rexford has the right to demand payment within 48 hours and can run Faraday Future if it doesn't pay up. If Faraday Future makes its payments, it could remain in the building until September 2025 when its lease expires.
The decision comes as Faraday Future is once again in financial distress.
The company reported it had just $8.5 million in cash as of September 2023. That's the latest number available because the company delayed filing its 2023 annual financial report in part because it deferred payments to outside audit consultants, according to an April 2 regulatory filing.
Rexford first sued Faraday Future in February, claiming it had missed multiple lease payments totaling about $1 million. Now, the EV startup has to pay $312,524.46 for what's due by April 30. She must pay this month's rent of $305,617.08 on or before April 15. She must pay next month's rent of $312,419.63 on or before May 6.
Faraday Future was not so fortunate in avoiding trouble in a different case, brought last January by the owner of an office it rented in San Jose. There, BXP Realty claimed Faraday Future stopped making rent 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 whether Faraday Future still occupies the space.
