Faraday has found yet a new future as Hong Kong’s Evergrande Health Industry Group acquires a 45 percent share in the EV startup for $1.2BN. Evergrande will buy the stake off Season Smart, that had promised to invest 2BN dollars into FF.
The 2 billion dollar deal still stands, only now it will be on Evergrande to pour the outstanding 1.2 billion dollars into Faraday Future. Season Smart had paid 800 million dollars for their 45% stake so far reportedly and Evergrande Health will be required to pay the balance after the take over.
The announcement sent shares of Evergrande surging and the firm says their investment is part of the group’s foray into high tech sectors. Evergrande Health said the deal would help it “obtain a strong competitiveness in the fast-growing new energy automotive industry, capture market share and diversify its businesses.”
For Faraday Future it is yet another straw to stay alive. The electric car venture had almost nothing but financial problems lately, mostly due to its founder and LeEco boss Jia Yueting. He will remain as CEO at Faraday Future and the startup says the funding will help them finish their FF91 car and to built up production facilities as well as to progress in R&D.