Palantir acquires 8.7% stake in struggling Faraday Future
- Palantir Technologies acquired an 8.7% stake in Faraday Future as part of a settlement for unpaid services.
- The partnership began in 2021 but deteriorated due to Faraday Future's financial struggles and failure to deliver on payments.
- This acquisition highlights the challenges faced by many electric vehicle startups in securing funding and maintaining partnerships.
In October 2023, Palantir Technologies acquired an 8.7% stake in Faraday Future, an electric vehicle startup, as part of a settlement for unpaid services. This transaction followed a breakdown in their partnership, which began in 2021 when Faraday Future had signed a commercial contract with Palantir after receiving a $25 million investment during its SPAC merger. The EV company faced financial difficulties, having delivered only a few cars and struggling to secure funding. Palantir's stake was a result of a settlement where Faraday Future owed $12.3 million, with $4.8 million still outstanding by August 2023. The settlement included stock payments, leading to Palantir's significant ownership stake after a reverse stock split. This situation reflects the broader challenges faced by many EV startups that initially thrived but later encountered severe financial issues.