Faraday Future Files Lawsuit Against Ex Execs For Spilling Secrets

Faraday Future Hanford factoryRendering

FEB 11 2018 BY STEVEN LOVEDAY 12

Faraday Future FF 91

Faraday Future FF 91

It seems former CFO Stefan Krause and former CTO Ulrich Kranz had ulterior motives upon departing Faraday Future.

As we previously reported, these newfound Faraday execs either left on their own or were fired, but now it’s coming to the forefront that perhaps they were there only to garner trade secrets, then left to start their own electric car venture, Evelozcity.

While Faraday seems short on money, the automaker has apparently come up with the funds to sue the former leaders. Faraday is reporting that the two men stole private information, as well as snagged some 20 or so employees as part of the new EV startup, which went underway in December of 2017.

Faraday Future

Faraday Future’s Jia Yueting and Nick Sampson in front of the FF 91 at its live debut this past January

Faraday’s statement compares the situation to the illegal use of a college term paper (via Forbes):

“Remember that time you wrote a term paper in college. You worked tirelessly, maybe even pulled an all-nighter. Then your roommate, and former friend, found a copy of the paper sitting on the printer. They thought it was good work – and they ‘borrowed’ it, standing on the shoulders of your efforts in order to reduce their own labor.

Stealing a term paper is one thing. Stealing trade secrets and core technologies that a company has spent more than $1 billion to develop is beyond a moral issue.”

Evelozcity, not surprisingly, disagrees with such accusations. Let’s not forget that such tech was likely originally taken from Tesla’s open-source patent info, as well as following in the footsteps of what’s already being tackled in the EV segment. However, we have no way of knowing exactly what “trade secrets” Faraday Future is referring to. Krause and gang followed up with a statement:

“We do not have, nor do we need, any technology from Faraday Future. This complaint continues Faraday’s pattern of hurling false and inflammatory accusations against us. We will respond to the many recklessly inaccurate allegations in this desperate lawsuit at the appropriate time.”

Obviously, Evelozcity will make it a goal to bank on Faraday’s struggling position thus far. Not to mention the fact that its new CEO and original founder Jia Yueting is at ends with the government in Beijing. The automaker is continuously attempting to dig itself out after many false claims and announcements, as well as financial and leadership struggles along the way. Regardless of all of this, Faraday continues to promise a car as soon as this year:

“Faraday Future and its 1,000 employees globally have worked diligently in an effort to deliver a new species of mobility to the marketplace that goes beyond what previous EVs have delivered, combining the best thinking around clean energy, intelligent technology, and autonomy. We’re still making progress, and we aim to deliver our first FF 91 to the market by the end of 2018. Our employees are working every day to make the improbable possible.”

Sources: Automotive News, Forbes

Categories: Faraday Future

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12 Comments on "Faraday Future Files Lawsuit Against Ex Execs For Spilling Secrets"

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Lamata

“Spilling Secrets” of a Failed Product that did not work …Nothing better to do..

Alaa

+1

William

This case may eventually end up in the circular file, under the heading “frivolous”.

Krause and Kranzs hopefully will be found to have followed the law regarding “trade secrets”, and done everything by the book in poaching some 20 or so employees (they probably willingly left on their own), in launching their new startup venture Evelozcity.

I hope Krause and gang turn Evelozcity into a honest and hard working lucrative EV concern. Tesla will always welcome some local EV competition, on their road to profitability and success, in the battery powered vehicle segment.

CDAVIS

Faraday Future said: “Remember that time you wrote a term paper in college. You worked tirelessly, maybe even pulled an all-nighter. Then your roommate, and former friend, found a copy of the paper sitting on the printer. They thought it was good work – and they ‘borrowed’ it, standing on the shoulders of your efforts in order to reduce their own labor.”
————-

That describes exactly how Faraday itself got started… big-time poaching the brain trust from former Tesla employees.

Hahahaha….

Then Farady tries to pass itself off as an original innovator:

Faraday Future said: “Faraday Future and its 1,000 employees globally have worked diligently in an effort to deliver a new species…”

Hahahaha… what a joke… you so funny Faraday Future.

ffbj

Yeah, I was like, what? Because they did the same thing.

CDAVIS

Which of these 4 have best shot at successfully competing against Tesla (and why)?:

Faraday Future

BYTON

Karma Automotive (formally Fisker Automotive that had went bankrupt and it’s assets purchased by Chinese autoparts company Wanxiang Group then those purchased assets reorganized by Wanxiang as a Wanxiang owned company called Karma Automotive)

Fisker Inc (When Fisker Automitove went bankrupt and it’s assets were sold off Henrik Fisker was able to retain the Fisker trademarks and the Fisker brand so now Fisker Inc is the re-launch of the “Fisker” brand which was previously used for the Fisker Karma under Fisker Automotive)

John

I’d pick none. All 4- nothing in production, all talk.

Tesla is safe as houses.

Kdawg

I’m just hoping Tesla is successful, let alone competitors.

Windbourne

Tesla will succeed. However, they need real competitors. Not the Chinese, ronault junk we see being sold.
If you doubt it, look at Google. They once were a powerful innovative company that really did focus on not being evil. Now, they are not much different than MS is.

Windbourne

Tesla really only has a few future competitors. Any real competitor must have a decent tied-to-highway fueling network.german companies along with ford, are setting it up very slowly, in Europe, but no where else.
As such, in 3-5 years, german makers, and ford, will finally have a small start.

Pushmi-Pullyu

Let’s not forget that 90% of startups fail. Let’s also not forget that the consensus from financial analysts in Tesla’s early years was that it was going to fail… or that at least once or twice, Tesla came very close to failing.

Of the four companies listed, I consider Faraday Future to be nothing but a sham, with no chance of ever becoming a success. I will guess that the new Fisker and Karma will most likely be part of the 90% which fail, as the original Fisker was. I know nothing about BYTON, so have no opinion.

I have some hopes for Rivian. At least they have produced a prototype EV and have bought an abandoned auto assembly plant. That, IMHO, puts them farther along than other wannabes, and perhaps further along than niche players like Workhorse and Bollinger, who IMHO also appear to have a shot at being successful.

Pushmi-Pullyu

The problem with this entire scenario is that it assumes FF has or had trade secrets which were actually worth stealing. I have not seen a shred of evidence pointing to such a thing.

No doubt FF had things about its prototype (the second prototype, the actual working prototype, not the first fake “batmobile” mock-up of a prototype) it considered proprietary, and no doubt it tried to protect those things it considered trade secrets. But just because FF treated its intellectual property as if it was valuable, doesn’t mean it actually was.

I don’t know if that would actually work as a defense against a lawsuit, but it would be amusing to see the defendants’ lawyers file a motion to dismiss the lawsuit on the basis that the intellectual property contained nothing of actual value, and thus nothing worthy of being treated as stolen! 😉