Faraday Future CEO accused of trying to break investor deal after spending $800 million

Faraday Future averted disaster at the end of 2017 when it secured a major new investmentfrom the healthcare division of Chinese real estate group Evergrande. But that money — some $800 million — was gone by July, according to a new filing with the Hong Kong Stock Exchange. Now, Evergrande is accusing Faraday Future founder and CEO Jia Yueting of trying to back out of the deal, and says it will take “all necessary actions” to protect itself and its shareholders. News of the filing was first reported by Reuters.

The Chinese conglomerate says Jia used “manipulating” tactics to persuade the board of directors who oversaw the deal to advance another $700 million. In the meantime, The Verge has learned that Faraday Future has struggled after having spent the first $800 million. Some of the company’s vendors and suppliers have not been paid, and layoffs are being considered, according to three former employees and sources close to the company, who asked not to be named out of fear of legal retribution. Representatives for Faraday Future did not respond to a request for comment prior to publication.

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