Faraday Future tries to split from main investor

Faraday Future tries to split from main investor

by Ben Hsu

That didn't last long.

In June 2018, Chinese electric car start-up Faraday Future announced it had received a $2 billion lifeline from Hong Kong-based Evergrande Health Industry Group Limited. The investment was big enough to keep the company afloat and allow it to start pre-series production of its first model, the FF91. The relationship soured and the two sides are now heading for a potentially costly court battle.

Evergrande made an $800 million payment to Faraday Future but didn't keep its promise of sending more money as the firm reached pre-determined goals, according to . Jia Yueting, the controversial businessman behind Faraday Future, began arbitration on October 3rd, the publication adds.

Posting on its official , Faraday Future explains it wants to end the deal with Evergrande because the company hasn't "lived up to its end of the bargain" by sending the remaining $1.2 million. The firm accused its main investor of trying to steal its intellectual property while preventing it from accepting funding from other sources.

Evergrande tells a different story. According to , it denies wrongdoing and pledged to fight to keep its 45-percent stake in Faraday Future.

In spite of the brewing trouble, Faraday Future stresses it remains in a position to deliver the first examples of the FF91 (pictured) -- an ultra-luxurious electric car -- in 2019. It built the first pre-production prototype in California, though a report from claims the car caught fire shortly after it was shown to the media.