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Faraday Future tries to split from main investor

Faraday Future tries to split from main investor

by Ben Hsu

That didn't last long.

In June 2018, Chinese electric car start-up Faraday Future announced it had received a $2 billion lifeline from Hong Kong-based Evergrande Health Industry Group Limited. The investment was big enough to keep the company afloat and allow it to start pre-series production of its first model, the FF91. The relationship soured and the two sides are now heading for a potentially costly court battle.

Evergrande made an $800 million payment to Faraday Future but didn't keep its promise of sending more money as the firm reached pre-determined goals, according to Automotive News. Jia Yueting, the controversial businessman behind Faraday Future, began arbitration on October 3rd, the publication adds.

Posting on its official Twitter account, Faraday Future explains it wants to end the deal with Evergrande because the company hasn't "lived up to its end of the bargain" by sending the remaining $1.2 million. The firm accused its main investor of trying to steal its intellectual property while preventing it from accepting funding from other sources.

Evergrande tells a different story. According to Reuters, it denies wrongdoing and pledged to fight to keep its 45-percent stake in Faraday Future.

In spite of the brewing trouble, Faraday Future stresses it remains in a position to deliver the first examples of the FF91 (pictured) -- an ultra-luxurious electric car -- in 2019. It built the first pre-production prototype in California, though a report from The Verge claims the car caught fire shortly after it was shown to the media.