Report: Faraday Future lands $900M from Tata as execs departby Justin King
Jaguar Land Rover's parent company is apparently willing to ignore the persistent allegations of mismanagement that have hobbled FF's production ambitions.
Faraday Future has reportedly received a significant cash injection from Tata Motors as a handful of executives jump ship.
Chinese media reports claim the Indian automaker has invested $900 million in the troubled startup, according to Gasgoo. The funding is said to represent a 10-percent stake, based on a valuation of $9 billion.
Faraday Future has been shrouded in controversy since its inception, thanks in part to a murky ownership and management structure headed by Chinese billionaire Jia Yueting.
Separate reports in Jalopnik and The Verge suggest at least five top executives have left in recent months or are heading out the door, including CFO/COO Stefan Krause and CTO Ulrich Kranz -- two BMW veterans brought in to help stabilize the company and bolster investor confidence.
After reports of Krause's departure surfaced in various media outlets, FF issued a statement suggesting he was being fired "effective immediately" and allegedly guilty of malfeasance and dereliction of duty. Krause fired back in a press release claiming that he had actually resigned a month ago.
Yet another report recently claimed FF was attempting to prepare for Chapter 11 bankruptcy as it looked for an investor to take control, with an alleged price tag of just a few hundred million dollars.
Notably, the startup has not shipped any vehicles and the status of its prototype development program is unclear. If the Tata investment is accurate, the company paid nearly half of what it spent to acquire Jaguar Land Rover from Ford a decade ago.
As the drama continues to swirl, it is difficult to distinguish whether the wild media reports and official company statements are based on facts or perhaps intentional misinformation. In any case, it would be surprising for a major company to bail out the struggling startup if Jia Yueting continues to retain control over its affairs.