Faraday Future has avoided getting evicted from its Los Angeles headquarters — for the time being.
The troubled EV startup reached an agreement April 2 with its landlord, Rexford Industrial, to stay in the building as long as it met a few conditions. If the startup violates any of the terms, Rexford has the right to trigger a 48-hour demand for payment and can boot Faraday Future if it doesn’t pay up. If Faraday Future makes its payments, it can 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. That’s the most recent figure available because the company is late in submitting its annual financial report for 2023 in part because it has put off payments to third-party audit consultants, according to an April 2 regulatory filing.
Rexford first sued Faraday Future in February, claiming it missed multiple lease payments totaling nearly $1 million. Now, the EV startup has to pay $312,524.46 towards what’s owed by April 30. It must pay this month’s rent of $305,617.08 on or before April 15. And it has to pay the following month’s rent of $312,419.63 on or before May 6.
Faraday Future was not so lucky in avoiding trouble in a different case, filed in January, by the landlord of an office it leased in San Jose. There, BXP Realty claimed that Faraday Future stopped making lease payments in December, and that it 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.
