EV startup Faraday cites death threats in campaign against board

By BLOOMBERG | 22 September 2022

LOS ANGELES: Faraday Future Intelligent Electric Inc. said its leaders have faced death threats in an increasingly contentious effort to disrupt the troubled EV startup’s plan to raise capital.

Attempts to bring in new funds have been affected by a "misinformation campaign of completely baseless allegations” that some directors plan to pursue bankruptcy for their personal gain, Faraday said today in a statement.

That has led to lawsuits, which have "escalated to threats of physical violence and even death threats.”

Faraday said it was referring the incidents to law enforcement agencies including the FBI, as well as to the US Securities and Exchange Commission.

The automaker didn’t specify who it believes is responsible. Faraday has been battling efforts by a shareholder group affiliated with co-founder Jia Yueting to oust some directors.

The investors this week filed a lawsuit that cited "a crisis of leadership” at the company. Jia and the shareholder group didn’t immediately respond to requests for comment.

Faraday is facing a number of other challenges.

The Los Angeles-based startup delayed the launch of its first electric SUV in July, and its auditor resigned in August. The SEC has opened a probe into Faraday’s financial statements.