Indian multinational conglomerate Tata group is investing whopping $900 million (around Rs 5,800 crore) into an American electric car start-up Faraday Future, reported Chinese media outlet.
Notably, Tata’s $900 million investment is accounted for 10 percent share in Faraday Future, which will soar the valuation of the startup to about $9 billion, reported Gasgoo.
Notably, Faraday Future is backed by Chinese entrepreneur, CEO/founder of LeEco Jia Yuetin.
Estabilished in 2014, Faraday Future is a California-based startup technology company focused on the development of intelligent electric vehicles. The company is named for one of the founding principles of electric motor technology known as Faraday’s law of induction.
The company has received more than 64,000 orders for its first model, the FF 91, a Tesla Model S rival, and is building a battery factory in Texas, but plans took a hit earlier this year when construction contractor AECOM claimed a payment of $21 million was delayed due to company’s financial and internal crisis.
Recently, there were lots of coverage about the company and Jia Yueting when several members of its top leadership team including CFO and CTO quit the company.
If the news about Tata’s investment will be confirmed, it will help the troubled electric carmaker to relieve the financial pressure.
To recall, Tata had already marked its first investment outside India when in 2015 it invested in Uber.