2016 has been a tough year for a lot of people, and with a little over two weeks left before the calendar flips a page, 2017 just can’t come fast enough. Add the folks over at Faraday Future to the list of people who are more than ready to bid adieu to 2016.
It’s been a tough year for the automotive startup and there appears to be no room in sight for any respite as a fresh report from Buzzfeed News indicates that Faraday is looking at two new lawsuits from its partners stemming from missed and unpaid payments.
One of these companies is Faraday supplier Futuris, best known within automotive circles for developing seating and interior components for several Chinese manufacturers and a handful of major automakers, including Ford, General Motors, and Toyota. According to the report, Futuris filed the lawsuit over claims that Faraday has been late on payments amounting to $10 million, of which $7 million is more than 30 days behind the agreed upon schedule.
If that’s not bad enough, the electric car maker was also on the receiving end of another lawsuit, this time from California-based property owner Beim Maple Properties, which is alleging that Faraday has missed out on warehouse rent payments totalling $104,950.50.
The two new lawsuits came after another Faraday partner, construction firm AECOM, came out with its own statement saying that the automaker was $21 million behind on its payments for September 2016 and another $37 million behind on payments for October and November 2016. The delayed payments forced AECOM to halt construction of Faraday’s $1.3 billion car factory in Las Vegas.
All these lawsuits are coming at the wrong time for Faraday as the company is a few weeks away from unveiling its much-hyped electric car at the 2017 Consumer Electronics Show. The lead-up to that event has now been cast under a dark cloud that is unlikely to go away anytime soon, not after Chinese tech billionaire Jia Yueting, the man funding the whole business, published a letter to Bloomberg News that was addressed to employees, admitting that the company “blindly sped ahead,” forcing its case demand to balloon. “We got over-extended in our global strategy. At the same time, our capital and resources were in fact limited,” Jia added.
With no clear-cut strategy in place other than asking for more financing from investors, the future of Faraday Future is as murky as it’s ever been, maybe even worse.
Continue after the jump to read the full story.
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