Electric vehicle company, Faraday, has been seized by rumors and drama surrounding its partial acquisition by a SPAC (special purpose acquisition company) earlier this year. Will Feuer reports for MarketWatch:
Electric-car startup Faraday Future Intelligent Electric Inc. said Thursday its company leaders are facing death threats and a misinformation campaign as they try to raise money for the production of its first vehicle.
The statement by Faraday FFIE, -2.70% comes after one of the Los Angeles-based startup’s largest shareholders sued in Delaware Chancery Court on Monday, alleging that its current board “has driven the company into the ground” since merging with a special-purpose acquisition company, or SPAC, earlier this year.
The shareholder group, FF Top Holding LLC, controls about 36% of voting power in Faraday. SPACs, also known as blank-check companies, have no operations and are designed to merge with private companies to take them public.
“Unfortunately, efforts to raise capital have been impacted by a misinformation campaign of completely baseless allegations that certain directors are conspiring to pursue an unnecessary bankruptcy for their own personal gain,” Faraday said in its statement.
Faraday has faced delays to the launch of its flagship FF 91 vehicle. It has also amassed substantial debt and lost top executives to a rival electric-vehicle startup.
The startup said it hired a law firm to conduct an independent investigation into the allegations against its directors but found them to be “without merit.” But the allegations have continued, and “threats that began with lawsuits have escalated to threats of physical violence and even death threats,” Faraday said. A spokesman for the company didn’t immediately provide further comment.