You Can Now Legally Invest In Faraday Future…
Faraday Future’s path to glory has been complicated to say the least. A series of ludicrously ambitious moves have been plighted with failure, followed by renewed hopes that were ultimately dashed. Incredibly, the aspiring automaker still exists and intends to begin production of its first electric vehicle once its money troubles are over.
Unfortunately, the company is currently engaged in a bitter legal battle with its biggest investor, China’s Evergrande Group, after a planned $2 billion investment went south. The reasons as to why are as foggy as the memory of a heavy drinker but Faraday wanted to trudge onward anyway. Initially, that seemed impossible — especially considering Evergrande held the ability to block any additional investments into the company. However, an interim ruling by a Hong Kong arbitration court has granted Faraday relief to seek financing without approval.
The company said it “can now welcome potential investors from around the world,” according to Reuters. However, if you happen to be a multi-millionaire looking to contribute toward the cause, we’d advise you to examine the company’s history extremely closely.
Faraday has lapsed on numerous debts owed to private suppliers, contractors, and the state of Nevada. In fact, a significant portion of Evergrande’s initial investment went toward paying off those debts. The company then requested an advance, which was denied, forcing arbitration. It is currently leasing a turn-key facility in Hanford, California that it wants to use for production and assembled its first body-in-white there this fall. Full-scale production was expected to commence before the end of the year but that timeline has gone out the window since the aforementioned legal battle began.
[Image: Faraday Future]
A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.
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Hmmmmm, this or the magic beans the other guy wants to sell me..
I hear Eddie Lampert is looking for investments for his hedge fund. This would compliment Sears very nicely.