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Briefing: Faraday Future employees file suit against Evergrande
Faraday Future employees sue investor over ‘conspiracy’ to destroy the EV startup – The Verge
What happened: Faraday Future employees have filed a suit against Evergrande in Los Angeles County Superior Court over a series of accusations including breaching contractual obligations as well as conducting other illegal activities. Employees of the EV startup alleged that Evergrande plotted from the beginning to drive it off a financial cliff and run off with the IP associated with the FF91 electric SUV, Faraday Future’s first production vehicle.
Why it’s important: The downward spiraling relationship between Faraday Future and its main investor Evergrande hit a low point when the EV startup filed for arbitration in Hong Kong in an attempt to resolve the dispute. Faraday Future alleged that Evergande‘s breach of funding obligations had forced it to significantly reduce employee salaries and downsize. While it still an on-going base, Faraday future was allowed to seek funding from other investors. According to the EV maker, it is currently in talks with a number of potential investors but nothing has yet to come to fruition. The company is also reported eyeing an IPO in as early as 2020.