Consumer Discretionary Tesla Motors Inc (TSLA): Faraday Future Gets Hit With Another Lawsuit As Dream To Chase Tesla Motors Blurs

Tesla Motors Inc (TSLA): Faraday Future Gets Hit With Another Lawsuit As Dream To Chase Tesla Motors Blurs

Published By News Desk at January 26, 2017 12:59 pm Upcoming electric vehicles startup Faraday Future has reportedly been hit with another major lawsuit as problems mount for the aspiring electric car maker

Tesla Motors Inc (NASDAQ:TSLA) had been openly challenged by upcoming electric vehicles startup dubbed Faraday Future, but that challenge seems to be blurring in the context of future problems – financial and legal – for the upcoming company, while Tesla continues to grow by leaps and bounds each year.

Last month, despite rumors and media reports claiming Faraday Future was running through a deep financial crisis and legal problems, the company did unveil a working version of its much anticipated futuristic looking FF91 high-end electric vehicle at the Consumer Electronics Show (CES) in Las Vegas. It turns out, that event alone has made a dent to the company’s already precarious financial position.

As reported by industry sales and news tracking website Inside EVs, the company is being sued by a technology company that had developed a 3D virtual tour presentation of the FF91 vehicle used at the CES. That company – The Mill Group – has said in the lawsuit that Faraday Future owes it $1.8 million for the digital presentation prepared.

As has been customary for Faraday Future, top company executives and representatives have failed to make a public or press statement relating to the matter.

Reportedly, the amount of $1.82 million owed by Faraday was promised to be paid in three installments, the first of which has already been paid, although the amount was just $20,000.

The company has also been going through top management crisis, with rumors that some of the crucial investors and top position holders in the company could be withdrawing their support – financial and otherwise.

Still, the company has promised it will be starting production of the FF91 next year, and has vowed to begin developing a factory in Nevada, where of course Tesla is already developing the world’s largest human-made building – the huge 10 million square feet battery plant dubbed Gigafactory.