Jump to content
  • William Maley
    William Maley

    Faraday Future Reaches A Truce With Its Main Investor

      Also opens the door for Faraday to find new financing 

    Towards the end of last year, the fate of Faraday Future looked to be bleak. Their main investor, Chinese company Evergrande Health Industry Group filed a complaint with the Hong Kong Stock Exchange that claimed Faraday tried to cancel a deal to sell a 45 percent stake to them. Evergrande claimed the company didn't meet various milestones to get the full $2 billion it had agreed to in the summer. But Faraday fought back, saying that Evergrade didn't cough up the cash.

    This would only signal the beginning of various issues. Throughout October, reports started to emerge that Faraday started implementing austerity measures that included a 20 percent cut in salaries and laying off a small group of workers. Later in the month, one of the co-founders of Faraday, Nick Sampson would step down.

    But there is some good news for Faraday. Earlier this week, Faraday Future announced that it and Evergrade have agreed to a new restructuring agreement. According to a statement, the new agreement will “terminate the previous investment contract, withdraw and waive all litigation and arbitration proceedings, and release all security including the asset preservation pledge and equity financing rights.” This agreement will see Evergrade's stake be reduced from 45 to 32 percent. 

    The agreement also opens the door for Faraday to look for new financing, something the company has badly needed for months.

    Source: Faraday Future on Twitter



    User Feedback

    Recommended Comments

    I thought a Saudi Prince billionaire bought the company..

    Now its a Chinese company that has it???   And that ownership group is also iffy on keeping it?  

    OK.  Future so bright, gotta wear...shades? 

    • Haha 1

    Share this comment


    Link to comment
    Share on other sites
    12 minutes ago, oldshurst442 said:

    I thought a Saudi Prince billionaire bought the company..

    Now its a Chinese company that has it???   And that ownership group is also iffy on keeping it?  

    OK.  Future so bright, gotta wear...shades? 

    I thought the Saudi Prince thing never happened.

    They have an interesting enough concept. I like the idea of some competition among the EV startups.

    Rivian seems to have the best shot at survival outside of Tesla.  This issue being solves for Faraday might let them survive also. 

    • Like 1

    Share this comment


    Link to comment
    Share on other sites
    9 hours ago, oldshurst442 said:

    I thought a Saudi Prince billionaire bought the company..

    Now its a Chinese company that has it???   And that ownership group is also iffy on keeping it?  

    OK.  Future so bright, gotta wear...shades? 

    I'm guessing you're thinking of Lucid Motors, which signed an agreement with the Saudi Arabia's Public Investment Fund (PIF), to get about a billion dollars. Still needs to be approved last I checked.

    Share this comment


    Link to comment
    Share on other sites
    16 minutes ago, William Maley said:

    I'm guessing you're thinking of Lucid Motors, which signed an agreement with the Saudi Arabia's Public Investment Fund (PIF), to get about a billion dollars. Still needs to be approved last I checked.

    Interesting that those scumbags would be investing in EVs..I guess they are trying to think of a future beyond petrodollars...

    • Upvote 1

    Share this comment


    Link to comment
    Share on other sites
    22 minutes ago, Robert Hall said:

    Interesting that those scumbags would be investing in EVs..I guess they are trying to think of a future beyond petrodollars...

    SA is doing everything possible to diversify their economy away from relying solely on oil. It's almost as if they know something we don't.

    • Haha 1
    • Upvote 1

    Share this comment


    Link to comment
    Share on other sites
    12 hours ago, Drew Dowdell said:

    I thought the Saudi Prince thing never happened.

    They have an interesting enough concept. I like the idea of some competition among the EV startups.

    Rivian seems to have the best shot at survival outside of Tesla.  This issue being solves for Faraday might let them survive also. 

     

    2 hours ago, William Maley said:

    I'm guessing you're thinking of Lucid Motors, which signed an agreement with the Saudi Arabia's Public Investment Fund (PIF), to get about a billion dollars. Still needs to be approved last I checked.

    Yes....it was Lucid Motors that I was thinking about.  I confused the two.

    I honestly do not believe Faraday nor Lucid will succeed therefore when I read news about those two, I do not really pay that much attention to the information given. This explains the mistaken identity. LOL. 

    Thanks Bill (and Drew) for the explanations! 

    Share this comment


    Link to comment
    Share on other sites
    1 hour ago, Drew Dowdell said:

    SA is doing everything possible to diversify their economy away from relying solely on oil. It's almost as if they know something we don't.

    I read on the internets about a conspiracy that SA wants to buy out EV companies so they could bankrupt them so they could continue to sell oil...LOL!!!   

    Share this comment


    Link to comment
    Share on other sites
    2 hours ago, Drew Dowdell said:

    SA is doing everything possible to diversify their economy away from relying solely on oil. It's almost as if they know something we don't.

    Makes one wonder if the figures on how much Oil everyone has is not overly  blown up. Could it be that the reality is maybe 10 to 20% of the stated figures is how much they have? 🤔

    • Haha 1

    Share this comment


    Link to comment
    Share on other sites
    3 hours ago, Drew Dowdell said:

    SA has been lying about the amount of discovered reserves they have left for years.

    I totally agree, there had been enough change in stated info that one does have to question how much of a resource they truly have left.

    Share this comment


    Link to comment
    Share on other sites
    6 hours ago, ocnblu said:

    Yeah, how slippery would THAT be?  LOL always with the comedy.

    Actually more truth than most are willing to accept. Wikileaks was the first to release documents that stated from SA own people that their reserves were overstated by as much as 300 billions barrels of oil or 40% more than they actually had.

    https://ourworld.unu.edu/en/wikileak-cables-saudi-arabia-oil-reserves-overstated

    Additional info on over inflated global oil reserves writeups.

    https://ourworld.unu.edu/en/oil-reserve-estimates-inflated

    SA oil exports have been dropping even when we were over $100 barrel, they need to change to other products as their piggy bank is running out.

    https://www.businessinsider.com/wikileaks-saudi-oil-reserves-2011-2

    Been a known issue for the last 20 years.

    image.png

    Plenty of science to show that OIL is not as much as we used to have and some counteries are in for a shock in the near future as the spigit runs dry.

    Share this comment


    Link to comment
    Share on other sites

    The switch from oil can happen quite quickly if there was dire national security interest. 

    Faraday future had a great concept, but maybe they're really in it for a far future day.

    • Thanks 1

    Share this comment


    Link to comment
    Share on other sites


    Join the conversation

    You can post now and register later. If you have an account, sign in now to post with your account.
    Note: Your post will require moderator approval before it will be visible.

    Guest
    Add a comment...

    ×   Pasted as rich text.   Paste as plain text instead

      Only 75 emoji are allowed.

    ×   Your link has been automatically embedded.   Display as a link instead

    ×   Your previous content has been restored.   Clear editor

    ×   You cannot paste images directly. Upload or insert images from URL.




  • Similar Content

    • By William Maley
      The future of Faraday Future is becoming dimmer. The Verge reported yesterday that the automaker has decided to shut down some operations this week at their headquarters in Gardena, California, and at its factory in Hanford, California. Workers who started after May 1st of this year “must take a furlough,” according to an email sent by FF CEO Jia Yueting. Those working before "will have the option to remain on board with a reduced salary of $50,000 per year," employees told The Verge. Yueting said the furlough will last at least through December, and is dependent on finding new funding.
      “We are grateful to all of the hundreds of employees who are willing to stay with the minimum wage [sic] and continue to work on the FF91 core project. This was an extremely tough decision to make, and we recognize the emotional stress and financial strain this puts on people’s personal lives.”
      In addition, Nick Sampson, one of Faraday Future’s three co-founders resigned yesterday. This follows the departure of Peter Savagian, former chief engineer of GM's EV1 and Faraday Future's senior vice president of technology and product development.
      “The company is effectively insolvent in both its financial and personnel assets, it will at best will [sic] limp along for the foreseeable future. I feel that my role in Faraday Future is no long [sic] a path that I can follow, so I will leave the company, effective immediately. I cannot continue knowing the devestating [sic] impact we are having on the lives of our employees, their families and loved ones as we as the [sic] ripple effect this will have on lives throughout our suppliers and the industry as a whole,” Sampson wrote in an email obtained by The Verge.
       “I have tried as best as I know how to find solutions to the problems but have met insurmountable barriers that I have not been able to resolve. I am sorry and sad that this day has been reached but I must do what my heart tells me.”
      Sampson added in his email that “if circumstances should materially change, I certainly would consider returning to the company.”
      A Faraday Future spokesman confirmed the departures of Sampson and Savagian in an email.
      Last week, Faraday Future announced that it would staff salaries by 20 percent and layoff a number of workers in an effort to save some money. Good news would come later in the week as an independent arbitrator allowed Faraday Future to look for funding without getting approval from its main investor Evergrande Health.
      Source: The Verge
      Pic Credit: Faraday Future
    • By William Maley
      The future of Faraday Future is becoming dimmer. The Verge reported yesterday that the automaker has decided to shut down some operations this week at their headquarters in Gardena, California, and at its factory in Hanford, California. Workers who started after May 1st of this year “must take a furlough,” according to an email sent by FF CEO Jia Yueting. Those working before "will have the option to remain on board with a reduced salary of $50,000 per year," employees told The Verge. Yueting said the furlough will last at least through December, and is dependent on finding new funding.
      “We are grateful to all of the hundreds of employees who are willing to stay with the minimum wage [sic] and continue to work on the FF91 core project. This was an extremely tough decision to make, and we recognize the emotional stress and financial strain this puts on people’s personal lives.”
      In addition, Nick Sampson, one of Faraday Future’s three co-founders resigned yesterday. This follows the departure of Peter Savagian, former chief engineer of GM's EV1 and Faraday Future's senior vice president of technology and product development.
      “The company is effectively insolvent in both its financial and personnel assets, it will at best will [sic] limp along for the foreseeable future. I feel that my role in Faraday Future is no long [sic] a path that I can follow, so I will leave the company, effective immediately. I cannot continue knowing the devestating [sic] impact we are having on the lives of our employees, their families and loved ones as we as the [sic] ripple effect this will have on lives throughout our suppliers and the industry as a whole,” Sampson wrote in an email obtained by The Verge.
       “I have tried as best as I know how to find solutions to the problems but have met insurmountable barriers that I have not been able to resolve. I am sorry and sad that this day has been reached but I must do what my heart tells me.”
      Sampson added in his email that “if circumstances should materially change, I certainly would consider returning to the company.”
      A Faraday Future spokesman confirmed the departures of Sampson and Savagian in an email.
      Last week, Faraday Future announced that it would staff salaries by 20 percent and layoff a number of workers in an effort to save some money. Good news would come later in the week as an independent arbitrator allowed Faraday Future to look for funding without getting approval from its main investor Evergrande Health.
      Source: The Verge
      Pic Credit: Faraday Future

      View full article
    • By William Maley
      The bad news keeps hitting Faraday Future. Earlier this month, we reported on the fight between the automaker and its latest backer, Evergrande Health Industry Group. Faraday claims that Evergrande failed to provide additional funds as part of an investment deal. Evergrande has denied this claim and has brought in lawyers to fight this charge. But this row has caused the electric car start-up to make some difficult decisions.
      The Verge obtained an email sent to Faraday Future staff on Sunday night, announcing that staff salaries would be cut by 20 percent, and laying off some workers. The email also states that FF CEO Jia Yueting has decreased his annual salary to $1.00. The austerity measures will begin next week.
      “The company is committed to monitoring its finances and will reevaluate this decision with the goal of restoring salaries once funding is available,” the email states.
      It's unclear how many people will be laid off. A representative for FF did not respond to The Verge when asked for a comment.
      Source: Bloomberg, The Verge

      View full article
    • By William Maley
      The bad news keeps hitting Faraday Future. Earlier this month, we reported on the fight between the automaker and its latest backer, Evergrande Health Industry Group. Faraday claims that Evergrande failed to provide additional funds as part of an investment deal. Evergrande has denied this claim and has brought in lawyers to fight this charge. But this row has caused the electric car start-up to make some difficult decisions.
      The Verge obtained an email sent to Faraday Future staff on Sunday night, announcing that staff salaries would be cut by 20 percent, and laying off some workers. The email also states that FF CEO Jia Yueting has decreased his annual salary to $1.00. The austerity measures will begin next week.
      “The company is committed to monitoring its finances and will reevaluate this decision with the goal of restoring salaries once funding is available,” the email states.
      It's unclear how many people will be laid off. A representative for FF did not respond to The Verge when asked for a comment.
      Source: Bloomberg, The Verge
    • By William Maley
      On the surface, Faraday Future appears to been having a run of good luck. It had gotten a major investment from healthcare division of Chinese real estate group Evergrande; testing is continuing on their first EV, the FF 91; and the company has started building pre-production vehicles at its US plant. But trouble always seems to be looming and it has struck once again for the start-up automaker.
      Yesterday, Reuters reported on a filing made by Evergrande Health for the Hong Kong stock exchange accusing Faraday Future of trying to cancel a deal to sell a 45 percent stake to Evergrande. Back in June, Evergrande Health agreed to buy the 45 percent stake into FF from previous owner Season Smart for $2 billion. It would begin with an $860 million initial payment, followed by installments of $600 million for 2019 and 2020. But Evergrande was notified a month later that FF had spent the $800 million it received from Season Smart back in December and was short on cash. It had agreed to pay $700 million ahead of schedule provided FF met certain undisclosed payment conditions.
      But FF and CEO Jia Yueting has opened arbitration to nullify the deal as it said Evergrande did not fulfill its end of the bargain - providing the cash. Evergrande sees it very differently, accusing Yueting of manipulating board members to move forward with arbitration. The company also claims that FF wants to revoke Evergrande's ability to approve plans to raise more money.
      That isn't the only money trouble FF is having. The Verge has learned from sources that a number of vendors and suppliers have not been paid in weeks. Emails that date back to August reveal Faraday Future representatives trying to explain the delay in payments is due to issues in payment processing. There are other excuses,
      Emphasis mine.
      One vendor told The Verge that an FF rep suggested they should hire a collection agency. Three other vendors have filed liens with the California Secretary of State - one of those totaling $400,000 for equipment sold to FF.
      If that wasn't enough trouble for the company, FF's sole preproduction version of the FF91 caught on fire last month. The fire took place a few hours after the vehicle debuted at a “Futurist Day” event for its employees and families. The extent of damage is not clear as FF "made employees sign non-disclosure agreements specifically related to the fire," according to former employees. This is a major setback to the company's plan to begin production later this year.
      Source: Reuters, The Verge

      View full article
  • Posts

  • Social Stream

  • Who's Online (See full list)

  • My Clubs

About us

CheersandGears.com - Founded 2001

We ♥ Cars

Get in touch

Follow us

Recent tweets

facebook

×
×
  • Create New...