SEC Subpoenas Faraday Future Executives

Several executives from perpetual automotive startup Faraday Future have reportedly been subpoenaed by the U.S. Securities and Exchange Commission as part of an investigation into inaccurate statements made to investors. Though, considering the nameplate’s history, it would be impossible to assume which item the SEC will be focusing on thanks to FF’s exceptionally long history of industrial misgivings.

We’ve covered Faraday Future’s long and bizarre story from the early days of delivering half-baked, though otherwise impressive, concepts to its more recent status as an automaker in the ethereal sense. It’s promised the moon and only managed to deliver a handful of production husks that never surpassed the body-in-white phase and some “production-intent” prototypes of the FF91. Though the larger story is the SEC’s sudden interest in electric vehicle startups that went public via mergers with blank check firms, better known as special purpose acquisition companies (SPACs), over the last two years.

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Yet Another Bailout for Faraday Future

Faraday Future, the contentious automotive startup that always seems to find (and then lose) sizable amounts of cash, has announced it has once again managed to secure new funding. According to its press release, Faraday says will receive $225 million in bridge financing via a funding round led by Birch Lake Associates.

While the bulk of the cash will go towards paying off vendors, some of which have filed lawsuits, around 40 percent will be left over to help get the FF91 to market and prove the company can actually build a car. The strategy seems risky, but it may be Faraday’s best bet at this point.

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Faraday Future Getting Back Into the Game With New Chinese Partner

With Faraday Future and Evergrande Health having officially settled their bitter legal dispute late last year, the once-again independent automaker could finally get back to hunting for new investors. Despite Faraday’s entire existence being overshadowed by financial missteps and bizarre business dealings (resulting in an inability to deliver product), it’s extremely good at scrounging up funds. Breaking ties with its primary financial partner might have seemed like bad news, especially after so many near-death experiences, but this is where the company shines the brightest.

On Sunday, Faraday Future signed into a 50-50 partnership with Shanghai-based internet gaming operator The9 — which amassed its fortune after gaining exclusive licensing rights to operate and distribute the extremely popular World of Warcraft in China. Faraday said the deal marks the first step in its plan to officially launch its dual-home-market strategy in both China and the United States.

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Your Future Honda EV Might Have a General Motors Battery

Not if you’re planning on leasing a Clarity Electric, of course, though future iterations of Honda’s greenest model could use what General Motors is pushing. Which is: a far more energy dense battery.

On Thursday, the two automakers announced a partnership to develop smaller, longer-ranged batteries for use in electric vehicles, primarily those sold in North America. Once the two achieve a breakthrough, GM will become Honda’s supplier.

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Joint Toyota-Mazda Assembly Plant Headed to Alabama: Report

It looks like Alabama has won out over North Carolina in the battle to secure a massive, $1.6 billion joint assembly plant. The factory, a partnership between Toyota and Mazda (which, as of last summer, Toyota owns a 5 percent stake in), is reportedly headed to Huntsville, Alabama, and should give the smaller automaker the American capacity it needs to boost crossover sales.

Sources tell Reuters that company officials and government representatives will make an announcement today at the future factory site. Not only does the new plant herald lots of new jobs, it also means a new model.

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Nissan to Spend $2.2 Billion for Controlling Stake in Mitsubishi

Yesterday’s vague Japanese media reports proved right this morning, as Nissan Motor Co. announced it will purchase a 34 percent controlling stake in scandal-plagued Mitsubishi Motors.

Taking advantage of Mitsubishi’s reduced market value following the company’s admission of cheating on Japanese fuel economy tests, Nissan’s 237 billion yen ($2.2 billion) bulk buy of shares makes it the automaker’s largest shareholder.

It’s a big win for Nissan, which can take credit for exposing the gas mileage scandal less than a month ago.

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Open-Minded Sergio Willing to Stick With Tech Partner; Could Play the Field, Though

Fiat-Chrysler CEO Sergio Marchionne can see a beautiful future with partner Google, but there’s plenty of fish in the sea, you know.

Speaking in Windsor, Ontario, where Chrysler Pacifica minivan production recently kicked off, Marchionne called FCA’s Google fling the “first phase” of their relationship, but admits to wanting to keep his options open, Automotive News reports.

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Daimler To Enter FCV Market In 2017

While Japanese and Korean automakers like Toyota and Hyundai are jumping into the hydrogen game, Daimler plans to begin its own journey in 2017.

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  • AZFelix This article does not appear to address non-functional exhaust tip segments attached to the muffler body. When stopped behind certain cars (especially at night), I have noticed that in some cars with dual tips projecting from a single muffler unit, one is fake. The functioning one is dark and sooty while the other has a clean and shiny inside with the solid back panel of the muffler being visible. I have seen this on a Camry and possibly an Accord and BMW if I recall correctly, and am certain these were all OEM exhausts. Feel free to chime in with other confirmed sightings. I also recall reading somewhere that Ford designed an exhaust system where the gasses were vented downwards through a hole proximal to the end of the tail pipe. This prevents discoloration of the metal and soot from building up on the exhaust tips. It was done to address complaints from owners.
  • Ajla Fair enough. He could have used more precision in his words.
  • ToolGuy I AM PLACING [sic] NICELY. There is NO NEED TO BAN ME. Personally I do lots of things which DON'T MAKE SENSE, sometimes to myself, often to others. WHO ELON MUSK ENDORSES is really kind of NONE OF MY BUSINESS. It is a FREE COUNTRY, in some ways, still. I wish I knew how to FORMAT MY COMMENT better. I USED TO KNOW HOW, maybe I am losing it slowly (lot of that going around, JUST SAYING).
  • Aja8888 I can't read those whole thread without throwing up....
  • ToolGuy Maybe I will GIVE IT A LISTEN. Probably when I'm MOWING THE LAWN. Probably with a BATTERY OPERATED MOWER. (There are also batteries IN MY HEADPHONES. And IN MY PHONE.) Does anyone remember how to make a NEW PARAGRAPH?