Monday, October 8, 2018

LA's Faraday Future Faces New Financial Troubles

Los Angeles-based electric car maker Faraday Future is facing new financial woes this morning, after the Chinese company which bailed out the company at the end of 2017 filed notice that it would seek to terminate a deal to invest a total of $2 billion into Faraday Future, reached last year. According to a regulatory filing in China, Chinese real estate group Evergrande is seeking arbitration to terminate its $700M investment deal with Faraday Future. In the filing, Evergrande says that a prior $800 million it provided to Faraday Future for 2018 was "basically been spent", and that it was manipulated into advancing another $700M. A report from The Verge says that Faraday Future has not been paying its vendors and suppliers, and layoffs are being considered, citing three former employees and sources close to the company.