Electric Car Startup Faraday Future Is Being Sued For $1.8M In Missed Payments

The complaint says that, to date, Faraday Future has only paid about $20,000 of the balance owed.

The Mill Group, a visual effects studio, has filed a lawsuit against electric carmaker Faraday Future for alleged breach of contract.

According to Jalopnik, the lawsuit alleges that Faraday Future owes The Mill Group over $1.8 million in unpaid bills. The electric car startup approached the firm to "prepare and provide a graphic presentation, with virtual reality, augmented reality, and holographic components, to promote the January 2017 launch of a new electric vehicle developed by Faraday."

The complaint says that, to date, Faraday Future has only paid about $20,000 of the balance owed. 

Farday first commented on the legal matter via Twitter, before later issuing a full statement.

In the statement, Faraday says:

"The Mill Group Inc. was brought in to Faraday Future to create Virtual Reality (VR) content for the FF 91 unveiling at CES. The Mill alleges that it is entitled to full payment for work that it performed. Faraday Future denies this contention, and looks forward to the the opportunity to present the facts supporting its position through the legal process.

Faraday Future prioritizes its strategic relationships with suppliers as a critical part of bringing our vision of future mobility to life. We are committed to fulfilling our financial obligations in a timely manner with all vendors, and by the same measure, will work to protect our business interests and company growth."

This most recent incident isn't the first time the automaker has become implicated in rumors concerning its fiscal viabiliy.

In addition to halting work on its $1 billion plant in Nevada, the secretive startup was criticized for receiving taxpayer subsidies for that same Nevada plant; additionally, other reports have been circulating that Faraday's main financier is catching flak for unpaid bills of its own. 


More in Operations