Faraday Settles Dispute With Main Investor: Might Have A Future

JAN 5 2019 BY JAMES FOSSDYKE 8

Struggling electric startup Faraday Future is free to seek new investment.

Faraday Future, the once-promising electric vehicle startup, is somehow still clinging on for dear life, despite being in difficulties for some time.

Now it looks to be a very happy new year for the firm, after it released a statement saying it had ended a dispute with a key investor. Faraday Future had previously accused Evergrande Health of China of trying to gain control of its intellectual property.

Both sides have since put their differences aside and cancelled all previous arrangements, allowing Faraday Future to seek alternative investment going forward.

The new arrangement will “terminate the previous investment contract, withdraw and waive all litigation and arbitration proceedings, and release all security including the asset preservation pledge and equity financing rights,” Faraday Future said.

The start of Faraday Future and Evergrande’s dispute began last year, when Evergrande agreed to buy a 45 percent stake in the firm. The investment was set to cost $2 billion, to be paid in installments until 2020. However, none of the money, including the $700 million upfront payment, ever made it to Faraday Future.

Evergrande will still be involved going forward, but will instead be buying a 32 percent stake instead.

According to the company’s founders, it has been “effectively insolvent” in recent months, but the turn of events could be a new dawn for the American firm, with “investors from all over the world” said to be already expressing an interest.

While the financial mess was being cleared up, Faraday Future continued to develop its first production model, the FF91 SUV. A fleet of pre-production version have already been built at the company’s factory in Hanford, California, but a schedule for customer deliveries has still yet to be given. Last August the company said deliveries would start early this year, but that is looking unlikely.

Right now Faraday Future is focussing on “maximizing the interests of shareholders, global suppliers and future users,” as well as delivering

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8 Comments on "Faraday Settles Dispute With Main Investor: Might Have A Future"

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*groan*

Still a long shot to survive…..

I thought the death of Schwarzenegger in the original Terminator film was drawn out.

Faraday Future from the beginning was a poorly managed China Inc operation meant to take the innovations of Tesla and claim those innovations as Farady originated innovations. Even their name “Faraday” was a Tesla backup name while Telsa worked to secure “Tesla”. It’s this mission mindset and that doomed Farady from the beginning because everyone saw through it for what it was.

Even Faraday’s company name is a wannabe Tesla copy:

“”Tesla’s backup name? Faraday. That name comes from Faraday’s law of induction, named for scientist Michael Faraday. “Our [Tesla’s] alternative name was Faraday, which was used by a competitor [Faraday Future] several years later,” -source:
https://www.yahoo.com/amphtml/finance/news/name-apos-tesla-apos-taken-162501023.html

2016

“Tesla Motors VP James Chen Left Company [Tesla] To Join Faraday Future… Faraday Future builds its executives team often from brain trust found at Tesla Motors.“ -source:
https://insideevs.com/tesla-motors-vp-james-chen-left-company-to-join-faraday-future/

Problem they have now is their reputation is so battered who would consider buying something from them if they are just going to fizzle again leaving owners holding the bag with a vehicle they won’t be able to get parts or service for because the company went belly up again.

None of the money ever made it to Faraday Future? Last I heard they actually got the first tranche of $700 million last year…