-February 6,2021-
Kings residents have heard the promises before – to make electric cars at the old Pirelli tire plant in Hanford to sell worldwide.
The start-up company, LA-based Faraday Future(FF) has had less than a stellar record to date.But now may just be their time.
They have leased the sprawling Hanford facility since 2017. The company prototype car FF91 made a big splash at an automotive show in 2016 where it was compared favorably to Tesla’s performance. But it has been downhill since with staff hired then fired and the founder going bankrupt.
But it is a new day with new management – coming at a time when the world seems eager to buy electric vehicles backed by governments looking to cut greenhouse gases. Witness the fever over the stock of Tesla or rival – Chinese-owned NIO.
Faraday Future has had the vehicle but not the cash to ramp up its own production. Now, there may be a way.
The way would be a merger with a company that is already traded publicly – Property Solutions Acquisition Corporation(PSAC). This company has only been in business since 2020 itself. Called a special purpose acquisition company (SPAC) it has been set up solely for this purpose. If this deal happens, Faraday Future would be traded on the NASDAQ under the symbol FFIE.
The merger would have the car made in both Hanford and in Asia where electric vehicles are hot -particularly in China where several start-up companies have ramped up sales. The Asia FF factory would be in South Korea with several partners. Production is anticipated a year from now says the company.
FF says they have received over 14,000 reservations to buy the $180,000 luxury car.
“This is an important milestone in our company’s transformation, one that we achieved with strong commitment from our employees, suppliers, and partners in the U.S. and China, as well as the city of Hanford, California,” CEO Dr. Carsten Breitfel said in a statement.
The boards of directors for both FF and PSAC have unanimously approved the proposed business combination, which is expected to be completed in the second quarter of 2021.Between the stock sale and PSACs investment, they hope to raise $1 billion.
On January 27, 2021, PSAC entered into additional Subscription Agreements with Subscription Investors in the amount of 2,000,000 shares of shares of common stock of PSAC for a purchase price of $10.00 per share, or an aggregate of approximately $20 million, which increases the total amount of the private placement pursuant to the Subscription Agreements to 79,500,000 shares of common stock of PSAC for a purchase price of $10.00 per share, or an aggregate of approximately $795 million according to a financial filing.
Since the announcement, the stock of PSAC has climbed from around $10 in early January to around $18 as of Feb 3.
The Wall Street Journal reported this week – Here’s a rule of thumb for investors looking for the next Tesla: Wait for the futuristic vehicles pictured in company presentations to hit the road.
Electric-vehicle startups are racing onto the stock market through special-purpose acquisition companies or SPACs. The latest is Faraday Future, which after years of financial troubles has finally bagged a deal to get its first luxury EV to launch next year. Shares in Property Solutions Acquisition Corp. , the blank-check company acquiring Faraday, have risen 42% since the announcement Thursday.
The happy couple join at least a dozen other EV ventures and SPACs that have announced similar mergers over the past half year or so. The deals have triggered trading surges and stock-market valuations ranging from speculative to incomprehensible, underpinned by the rally in Tesla’s even more highly valued shares.
Snowpack improves with storms
Snow pack has improved in recent days with those strong storms that dropped plenty of the white stuff in the Sierra. Snow water equivalent for Feb 2 is 67% of average for this date in Northern California ,72% in the Central Sierra and 58% in the Southern Sierra. Statewide we are 68%. A week before, the state average stood at 41%. Skiers at China Peak are happy as up to 7 feet of snow was measured on the upper slopes. Not so happy are some 15 Giant Sequoias that fell due to high winds in Yosemite.
Oil prices rebound
Midway Sunset crude oil has climbed since the election from around $35 a barrel to over $56 a barrel today as the oil patch rebounds from a depressed market for the past year. Meanwhile Chevron, with extensive holdings in Kern, Fresno and Kings Counties is eying a merger with Texas-based Exxon/Mobil. The latter has fueling stations in the state but few operations.
Ceil Howe III on Westlands WD Board
On January 19, Westlands Water District Board of Directors appointed Ceil Howe III to the vacancy created when Director Don Peracchi resigned last month. Howe will serve through the end of Peracchi’s term in 2022.
“Ceil has farmed in Fresno and Kings counties for many years, and he will be an important voice on our Board as we address the important issues that will face Westlands in the months and years ahead,” said Westlands Board President Daniel Errotabere.
Howe currently serves as Partner and Principal at Pomona Farming which grows raisins, wine grapes, pistachios, and almonds in Westlands Water District. Howe, a third-generation farmer, was born and raised in Stratford, on his diversified family farm, Westlake Farms Inc.
Farm employees begin to receive COVID-19 vaccine
California Farm Bureau reports that work is just beginning to bring COVID-19 vaccinations to California farm employees, but inoculation clinics have been held on a number of farms. County Farm Bureaus around the state have been coordinating with local public-health agencies to arrange for farm employees to receive vaccines. Local task forces are working to reach farm employees in their native languages with information, so more can receive vaccines as supplies improve.Reports say Foster Farms in Fresno is vaccinating 1000 workers at their Fresno plant.
Fresno State’s Viticulture greenhouse breaks ground
Fresno State’s Viticulture Department broke ground late last month on a 30-foot by 30-foot greenhouse located at the center of the campus viticulture and enology complex. It will allow students, staff and faculty to grow and graft an array of vines for industry-supported research projects and the University Agricultural Laboratory’s 120-acre vineyard.
Construction is expected to start in February and be completed by fall 2021.The project was made possible through a $250,000 fund raising effort supported by local industry.