(Yicai Global) July 23 -- Faraday Future, the US electric car startup set up by Chinese businessman Jia Yueting, inched 1.45 percent above its issue price on its first day of trading on the Nasdaq stock exchange, finally raising the cash it needs to start mass production after seven years of setbacks.

After an initial surge of 22 percent, Faraday Future’s share price [NASDAQ:FFIE] closed at USD13.98 yesterday, just above the offer price of USD13.78.

The listing is a new starting point, Jia said yesterday. Now that the funding is finally in place, the California-based company will go all out to achieve mass production and delivery.

Much of the USD1 billion raised will be used for operations as the company has already converted most of its debts into equity, Chief Executive Officer Carsten Breitfeld told Yicai Global.

Faraday Future’s luxury FF91 model will start deliveries nine months after going public and mass production will begin a year later, Breitfeld said. Sales should reach 40,000 vehicles in the second year and top 270,000 units a year within five years, he added.

Manufacturing will take place at the company’s Hanford plant in California, Breitfeld said. Already 75 percent of the equipment is in place and once mass production starts, there will be over 150 workers in the factory.

Production has been dogged with setbacks, mostly arising from Jia’s personal debt crisis. Jia, who also set up Beijing-based internet firm Leshi Holdings Group, fled China for the US in 2017 to escape mounting arrears largely caused by an overambitious diversification plan that did not pay off.

Part of Jia’s restructuring plan, approved by a US court last May, was to put all of his equity in Faraday Future, about 33 percent, into a creditor’s trust. Original shareholders and creditors will continue to won most of the carmaker’s equity, around 66 percent, after the listing. Jia’s ex-wife is also reported to hold 7.2 percent company shares.

Now that the company is on its feet, Jia has said that he will return to China to face the music.

Editor: Kim Taylor