Report Claims Jaguar-Land Rover Owner, Tata Invests Big Into Faraday Future (Update)

NOV 14 2017 BY MARK KANE 33

Chinese sources are reporting that the Tata Group (the owner of Jaguar Land Rover) has made a $900 million investment in the struggling Faraday Future.

Faraday Future Hanford factoryRendering

Faraday Future Hanford factory rendering

According to the news, the Indian company acquired just 10% of Faraday Future in exchange for its cash infusion, which makes us wonder how one could come to the conclusion that FF is worth $9 billion, especially in its current shape?

The investment of Tata into Faraday Future is imaginable, but we are cautious about the suggested return for the money – so until we hear some confirmation from Tata, we going to just assume that there is some confusion in the ownership percentages … or perhaps the total investment itself.

Both companies have been contacted about the tie-up, but as of press, neither has yet to made a statement one way or the other.

Moving on.

Update (November 16th): DNAIndia reported Wednesday (and perhaps not surprisingly), that Tata has made a statement, confirming it has made no such investment.

A Tata Motors spokesperson said, “The news is not true and hence we do not have any comment”

With $900 million dollars in the bank, Faraday Future would certainly be back on track to finish and introduce the FF 91 to the market.  And having Tata on-board, would also bring many other production advantages.

The 130 kWh FF 91 was promised to have up to 380 miles (>600 km) of EPA range, and be ready in 2018, but that ship has already sailed, considering the company’s financial woes of late. The company suggests the project will now arrive in 2019.

source: Gasgoo via Autocar

Categories: Faraday Future, Jaguar

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33 Comments on "Report Claims Jaguar-Land Rover Owner, Tata Invests Big Into Faraday Future (Update)"

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Gerhard Hauer
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Gerhard Hauer

1+1=……7???

This does NOT add up.

Robert Weekley
Guest

It does, if you turn the 7 upside down, flip it around, and look at it in a mirror, with dark rose colored glasses!
/Sarc!

???
Guest
???

“Investment” does not mean Tata paid all that money for FF stock. Maybe Tata paid only 100 million for stock and loaned the rest taking security in FF’s IP (car designs, etc.) and other assets. If FF defaults and goes under, Jaguar can use the blueprints to build FF91 with Jag’s badge.

Spoonman.
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Spoonman.

What unique tech does FF ostensibly have? I don’t get why it’s worth a cent.

SJC
Guest
SJC

They have a developed vehicle, it is worth MUCH more.

yogurt
Guest
yogurt

+1

The people around her like EVs but generally know little of the auto industry…
It can cost kore than 900 million to design one vehicle…

People here might want to check and see how much money Tesla spent before one single model S was sold…

Pushmi-Pullyu
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Pushmi-Pullyu

Tesla developed, manufactured, and sold thousands of Roadsters, then bought and refurbished the NUMMI auto assembly plant, all before the Model S went into production.

That hardly compares to FF managing to build a couple of concept cars, only one of which was finished.

SJC
Guest
SJC

Tesla was fortunate to buy the NUMMI plant at such a discount. They worked on the RAV-4 EV and gave a roadster to the Toyota CEO.
The opportunity to buy the plant is a ONE time event that other auto makers would find hard to duplicate.

Pushmi-Pullyu
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Pushmi-Pullyu

They have a prototype. Whoopee. High school shop classes can and do build prototype cars, but nobody would claim those are worth millions of dollars.

We have no evidence the FF prototype is even worth the storage space it would need if someone wanted to keep it.

Clive
Guest
Clive

That and If I gave up $900 million I’d sure as hell be getting more than 10% of the company

Ad van der Meer
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Ad van der Meer

So an unnamed source says Faraday Future is worth $9 billion. I don’t think FF even owns a building and for all we know the furniture may be leased as well. So $9 billion for a prototype and a couple of patents? Really?

jpo234
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jpo234

FF doesn’t own its intellectual property.

Src: https://www.theverge.com/2016/12/22/13908160/faraday-future-vs-ff-cayman-global-problems-jia-leeco-lesee-car

“…the company’s intellectual property is not owned by FF, but by a separate entity named FF Cayman Global…”.

Tom
Guest
Tom

Only the finest most reputable sources…believe me.

yogurt
Guest
yogurt

FYI… Gasgoo is a relaible source for Chinese auto industry news which I happen to follow since I am a auto junkie and China is frankly going to be driving the future of the auto industry…

This is FF so it could still be false…

yogurt
Guest
yogurt

FF being worth 9 billion does sound crazy but JLR investing in them, even that much is not crazy at all depending on what they get…
It caan cost 100s of millions if not a billion to design devolop engineer and produce a car so if JLR gets full rights to use FF platforms to make a JLR version it is not bad…
If the report is true FF probably no longer needs a manufacturing plant as JLR would probably build the autos for FF which will make money for JLR and keeps their unions happy…
This could also explain why FF execs have been leaving the last month…
Of course this could be another false report on FF but one thing for sure is FF aint goin under quietly if they go…

Pushmi-Pullyu
Guest
Pushmi-Pullyu

“…makes us wonder how one could come to the conclusion that FF is worth $9 billion, especially in its current shape?”

I am absolutely gobsmacked. I find it incomprehensible that anyone would be willing to throw that kind of money at a failed and more-or-less worthless company like Faraday Future.

Was this some sort of tax write-off or some such; a ploy to deliberately waste money?

yogurt
Guest
yogurt

a ploy to deliberately waste money?

Tata is a business not the US federal goverment…

Clive
Guest
Clive

Tata’s owners clearly have money to burn.

James
Guest
James

Businesses waste money all the time. Hewlett-Packard bought WebOS for $1B, don’t forget.

Jim J Fox
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Jim J Fox

Best comparison of the month!

Dan
Guest
Dan

FAKE NEWS. Wait, maybe really so.

Vexar
Guest
Vexar

This makes no sense. Tata could have easily rescued the Amiga computer from the Commodore collapse but chose not to. They also had their shot at the DeLorean. Again, no interest. Both of those companies/products were selling, not in some infancy. Maybe someday, someone will put an Amiga into a Delorean and rebuild it as an EV. Hmm. That’s kind of what the Tesla is, isn’t it? I mean, the Model X for sure. Part computer, part car, part time machine.

James
Guest
James

Faraday Future is like a character from a horror film who keeps getting killed and coming back to partial life. That stupid pop up lidar is going to kill us all.

wavelet
Guest
wavelet

Highly unlikely. A successful early-stage company may have been worth this much, but FF only had an advanced design + early prototype. More significantly, they have a lot of debt and upcoming lawsuits (financial stuff from investors as well as labor, not paying contractors etc.) which would make it a pain to own.

If Tata or its subbrands had no EV program and they wanted to get into the act quickly, I could see them paying a few $100Ms for a final design/prototype ; but Jaguar already has a very advanced EV program for an upmarket BEV, and Tata itself is already selling low-end BEVs, I don’t see what upside a deal would have.

Pushmi-Pullyu
Guest
Pushmi-Pullyu

If jpo234 is right, and FF doesn’t even own its own intellectual property, then it makes even less sense. What’s the point in buying a prototype car, even if it is a valuable production prototype for a car that actually was built with an eye toward being mass produced in a cost-effective manner, and would be competitive in the marketplace — and all that seems very unlikely from a company as clueless and badly managed as FF — what’s the point in buying the car if the rights to produce it don’t accompany the purchase?

As Gerhard Hauer said in the first comment here: This does not add up.

CDAVIS
Guest
CDAVIS

Lol…Sort of like investing in EEstor…

Pushmi-Pullyu
Guest
Pushmi-Pullyu

😆

Well, at least FF was willing to show its prototype in public, unlike EEStor.

floydboy
Guest
floydboy

May want to use the already developed tech in the Jaguar lineup. Not having to do it from scratch may be worth it.

Fool Fighters
Guest
Fool Fighters

What a shame they didn’t invest in Lucid Motors instead. Would love to see the Lucid Air come to market.

ToMarsAndBeyond
Guest
ToMarsAndBeyond

Tata just confirmed that they do NOT invest in Faraday Future. So this was fake news.

Jay Cole
Admin

Indeed (and story is updated to reflect that), but I think we covered it appropriately, as being more on the side of the unbelievable when the report first surfaced.

“…so until we hear some confirmation from Tata, we going to just assume that there is some confusion in the ownership percentages … or perhaps the total investment itself.”

ToMarsAndBeyond
Guest
ToMarsAndBeyond

True. Better than most news media that took the unconfirmed rumour, without a source, as being true. Big question now is, what will Faraday Future’s next move be? I am curious what happens next.

Jay Cole
Admin

Heeh, we do try to report it all…but with our “BS” antennas up at the same time, (=

/who knows what FF does next