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Industry News: Faraday Future Reaches A Truce With Its Main Investor


William Maley

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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


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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. 

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Be interesting to see if they finish bringing online their assembly line in northern California.

https://www.ff.com/

59 minutes ago, Drew Dowdell said:

Do they even have a production line somewhere yet?

https://www.ff.com/us/press-room/new-hanford-manufacturing-facility/

Hanford California is where their production facility is located.

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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.

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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...

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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.

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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! 

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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!!!   

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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? 🤔

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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.

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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.

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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.

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