Subsequent Events

9 Months Ended

Sep. 30, 2023

Subsequent Events [Abstract]

Subsequent Event

Subsequent Events

The Company evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that the Condensed Consolidated Financial Statements were issued. Other than as described below, the Company did not identify any subsequent events that would have required adjustment or disclosure in the Condensed Consolidated Financial Statements.

Conversion of Notes Payable into Class A Common Stock

Between October 2, 2023 and November 9, 2023, the Purchasers converted portions of the aggregate principal amount of $9.4 million notes payable into 10,570,266 shares of Class A Common Stock including aggregate principle amount of $1.5 million of related party notes payable (MHL) into 1,781,682 shares of Class A Common Stock.

Sale Leaseback Transaction

On October 19, 2023, Faraday&Future Inc. (the “Tenant”), a subsidiary of FFIE, entered into a sale leaseback transaction whereby it has exercised its option to purchase the FF ieFactory California and simultaneously completed a sale leaseback to Ocean West Capital Partners (“Landlord”) pursuant to that certain Lease Agreement, dated as of October 19, 2023, by and between the Tenant and 10701 Idaho Owner, LLC (the “Lease Agreement”). The Lease Agreement also allows the Tenant to access to up to $12.0 million of tenant improvement allowance for the FF ieFactory California. The new lease will be for a term of five years, with a monthly lease rate of $0.4 million, with a five-year extension option, and the Tenant has an option to purchase the fee interest in the FF ieFactory California at any time after the second year of the lease term. Furthermore, the Tenant has a right of first offer to purchase the FF ieFactory California in the event Landlord desires to sell the FF ieFactory California.

Unsecured SPA Funding

In October 2023, VW and MHL funded an additional portion of Unsecured SPA Notes. The Company received net proceeds of $1.8 million in exchange for such issuance.

At-the-Market Funding

Pursuant to the Sales Agreement, the Company has sold 14,273,045 shares of Class A Common Stock for a total gross proceeds of $16.6 million. The Company pays a fee of 3.5% of the gross sales price, to the Sales Agents and received $16.1 million net of this fee.