Faraday Future has been the subject of much controversy after the company unveiled the FF91 during the CES 2017. Despite numerous reports that the company is going to file for bankruptcy if they do not come up with the required funding by February 2017, the company shushed some rumors when they came up with a prototype for its car, which would purportedly begin production by 2018. This time, Faraday Future is facing another setback -the studio behind the company's fancy videos is filing a lawsuit to collect from the company.
Faraday Future Lawsuit
Faraday Future has already been struggling in securing the trust of consumers. This time, The Mill filed a lawsuit against Faraday Future after the company failed to meet its financial obligations. The Mill is the company behind the awesome promotional videos for the company. With the awesome graphical representations of the company's car, there was renewed hope for the FF91. With the current state of things, however, the company might be deeper into debt as the CGI company is suing for $1,802,750 exclusive of interests and other costs for the services it rendered to Faraday Future.
Out of the total contract price, The Mill only received $20,000. There are already a lot of creditors hounding the company due to unpaid debts which is why it is on the brink of bankruptcy. Thanks to The Mill's awesome work, Faraday Future reportedly received 64,124 reservations. It is still unclear how many people paid the $5,000 reservation fee. As assessed by one publication, Faraday Future would have $320 million if everyone who reserved paid the priority fee.
Faraday Future Finances
News on the cash flow issues of Faraday Future is not new -the company has been under much heat even before the CES. The electric vehicles of the company were not produced on schedule due to Faraday Future's failure to meet its payment obligations. There were renewed hopes that this company, which has been dubbed as Tesla's major competitor, will make it through the financial slump.
If the company goes bankrupt over this lawsuit, the electric vehicles from the company would remain to be all CGI courtesy of The Mill. Faraday Future is yet to comment on this issue.