Benzinga | Jan 10, 2021 04:05PM EST

EV Maker Faraday Future Looks To Raise $400M Through Merger With SPAC Company

Faraday & Future Inc. is considering going public through a merger with special purpose acquisition company Property Solutions Acquisition Corp. (NASDAQ:PSAC).

What Happened: EV startup Faraday Future is looking into a deal with the blank check company, Bloomberg has reported, citing people familiar with the matter.

Property Solutions is said to be looking to raise over $400 million, which would put Faraday Future's valuation at $3 billion. The startup already has $2.3 billion in funding through equity and debt financing.

The California-based company said it would start selling its EV sport utility vehicle, called FF 91, a year after the funding deal closes.

Property Solutions raised $230 million in a July 2020 initial public offering and earlier said it would be targeting the real estate industry, Bloomberg reported.

Faraday was founded by Jia Yueting, who filed for bankruptcy in the U.S. in October 2019, after he ran out of billions of dollars trying to build a company in China.

SPAC Wave EV companies have been part of the wave of SPAC deals that picked up last year, with Nikola Corporation (NASDAQ:NKLA) and Fisker Inc (NYSE:FSR) taking this route to going public.

Image: Faraday & Future Inc