China’s Evergrande Health is considering a suit against electric vehicle start-up Faraday Future for “misleading” the public after the latter claimed a “decisive victory” against its investor through arbitration, local media is reporting.

Instead of dissolving the weeks-long dispute between Faraday Future and Evergrande Health as expected, the emergency arbitration result released by Hong Kong International Arbitration Centre last week only adds another conflict point between the two parties as both claim to have “won” the case.

The arbitrator rejected Faraday Future’s request to deprive Evergrande Health its right to withhold its consent to FF’s future financing, but allowed the EV startup to proceed with financing under stringent conditions: the valuation of any equity financing shall not be lower than post-money valuation; Season Smart (Evergrande Health affiliate which owns 45% of the joint venture that controls FF) continues to enjoy pre-emptive rights and, pending the outcome of the final arbitration, Faraday Future can obtain financing at a capped amount of $500 million, according to a statement made by Evergrande Health on Hong Kong Stock Exchange.

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Emma Lee

Emma Lee is Shanghai-based tech writer, covering startups and tech happenings in China and Asia in general. We are looking for stories related to tech and China. Reach her at lixin@technode.com.