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

3 days ago by Mark Kane 32

Faraday Future FF 91

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

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

  1. Gerhard Hauer says:

    1+1=……7???

    This does NOT add up.

    1. 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!

  2. Spoonman. says:

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

    1. SJC says:

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

      1. yogurt says:

        +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…

        1. Pushmi-Pullyu says:

          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.

          1. SJC says:

            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.

      2. Pushmi-Pullyu says:

        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.

        1. Clive says:

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

  3. Ad van der Meer says:

    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?

    1. jpo234 says:

      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…”.

  4. Tom says:

    Only the finest most reputable sources…believe me.

    1. yogurt says:

      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…

  5. yogurt says:

    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…

  6. Pushmi-Pullyu says:

    “…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?

    1. yogurt says:

      a ploy to deliberately waste money?

      Tata is a business not the US federal goverment…

      1. Clive says:

        Tata’s owners clearly have money to burn.

      2. James says:

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

      3. Jim J Fox says:

        Best comparison of the month!

  7. Dan says:

    FAKE NEWS. Wait, maybe really so.

  8. Vexar says:

    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.

  9. James says:

    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.

  10. wavelet says:

    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.

    1. Pushmi-Pullyu says:

      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.

  11. CDAVIS says:

    Lol…Sort of like investing in EEstor…

    1. Pushmi-Pullyu says:

      😆

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

  12. floydboy says:

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

  13. Fool Fighters says:

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

  14. ToMarsAndBeyond says:

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

    1. Jay Cole says:

      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.”

      1. ToMarsAndBeyond says:

        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.

        1. Jay Cole says:

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

          /who knows what FF does next

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