Property Solutions SPAC shares rise after reporting on Faraday Future Deal


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What happened

Shares of Acquisition of real estate solutions (NASDAQ: PSAC), a special-purpose acquisition (SPAC) company, rose Monday after a report that it may be close to entering into a merger deal with electric vehicle startup Faraday Future.

As of 11:30 p.m. EST, Property Solutions stock was up 18.1% from Friday’s closing price.

so what

Bloomberg reported that Property Solutions is in talks to merge with Faraday Future in Los Angeles to bring Faraday public, valued at approximately $ 3 billion.

Property Solutions is working to raise around $ 400 million, apparently the amount needed to carry out the merger deal, according to the report. Faraday said his luxury electric vehicle, the FF 91, could be in production in about a year after raising additional capital.

Many analysts thought Faraday could prove to be Tesla Competitor after the company’s impressive presentation at the 2016 Consumer Electronics Show. But after Faraday unveiled the FF 91 a year later, momentum stalled when co-founder Jia Yueting went into debt while trying to build a business empire in China. and left many early Faraday employees.

Faradays FF 91 was hyped when it was first introduced in 2017. Faraday hopes to finally get it into production next year. Image source: Faraday Future.

What now

Faraday is now run by a former BMW Managing Director Carsten Breitfeld, and he appointed former FOX Factory Holding CFO Zvi Glasman just last week. While auto investors should be careful here – the deal isn’t official yet and things could change quickly – it appears Brietfeld is assembling the parts necessary to finally get the FF 91 into production.

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