The company is behind on rent
Car company Faraday Future defaulted on nearly $1 million in lease payments and was sued. Faraday Future later reached an agreement with the landlord and can continue to remain in the building as long as certain conditions are met.
In February of this year, Rexford Industries sued Faraday Future over rent arrears. Faraday Future was then accused of failing to pay rent, associated service fees and taxes for January and February.
According to the latest agreement reached between the two parties, Faraday Future must pay arrears of $312,524.46 by April 30 of this year and at the same time pay this month's rent of $305,617.08 no later than 15 April. In addition, next month's rent of $312,419.63 is due by May 6th.
If Faraday Future fails to comply with any of these conditions, Rexford Industries has the right to immediately demand payment within 48 hours. If Faraday Future does not pay, Rexford Industries may require Faraday Future to vacate the premises. If Faraday Future pays on time, the lease between the two parties could extend until September 2025.
It is worth noting that Faraday's Los Angeles headquarters building was originally owned by Faraday Future and was purchased by Jia Yueting in 2014 for US$13.2 million. However, due to the subsequent lack of funds for Faraday Future, Jia Yueting sold it to Atlas Capital, a New York real estate company, and continued to lease the building.