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Once-promising Tesla rival Faraday Future hits roadblock amid CEO’s $800M controversy

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Once-promising and outspoken Tesla rival Faraday Future has hit another roadblock, as CEO Jia Yueting is being accused by an investor of spending $800 million worth of funds and then attempting to back out of the deal. The investor in question, the healthcare division of Chinese real estate group Evergrande, has noted that it will take “all necessary actions” to protect itself and its shareholders.

Faraday Future has been beset by multiple delays and problems over the past years. Once the company that is branding itself as a startup that would dethrone Tesla from its place in the premium electric car market, the electric car startup has met a slew of problems, from dire financial straits to an exodus of key executives. In addition, Faraday Future’s first vehicle, the ultra-luxury FF 91 SUV, has yet to start production.

Faraday Future received a much-needed lifeline at the end of 2017 by securing a $2 billion investment from Evergrande Health–a subsidiary of property developer China Evergrande Group. Evergrande noted that it had agreed to buy Season Smart Ltd, a firm which owns 45% of Faraday Future, for $860.2 million. The Chinese property developer also agreed to pay Faraday Future $1.2 billion in two installments which are due in 2019 and 2020.

This Sunday, Evergrande revealed that it had signed a supplemental agreement to pay the electric car maker $700 million ahead of schedule. And now, Evergrande noted that Faraday Future CEO Jia Yueting had initiated an arbitration at the Hong Kong Arbitration Center against the Chinese firm, claiming that the promised payment was not fulfilled. Reuters noted that the CEO’s arbitration aims to deprive Evergrande rights as a shareholder for electric car startup as well.

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Its trouble with Evergrande is just one of the company’s concerns. Speaking with former employees of the electric car startup, The Verge has noted that Faraday Future is allegedly struggling once more despite the company having spent around $800 million. Due to the company’s alleged financial troubles, the former FF employees claimed that vendors and suppliers had not been paid, and layoffs are being considered. In what seems to be a stroke of misfortune, the company’s first pre-production version of the FF91 reportedly caught fire in late September after the vehicle was showcased at a “Futurist Day” event for employees and their families.

Much of Faraday Future’s troubles are connected to the activities of its CEO. Last year, Jia found himself in China’s official “Blacklist” for credit defaulters. Due to his assets being frozen in China, the Faraday Future CEO currently resides in the United States. His handling of the electric car startup has been polarizing at best. Last year, for example, a disagreement between Jia and Faraday Future’s then-CFO turned public, compromising an attempt to restructure the company through bankruptcy.

It remains to be seen if Faraday Future could eventually get the vehicle to market. When the FF 91 was unveiled, the electric car startup compared it favorably against the Tesla Model S P100D. The FF 91 is a large SUV has a 0-60 mph time of 2.4 seconds, a 130 kWh battery pack, and a range of 289 miles per charge. The vehicle also features a number of nifty tricks, such as LiDAR for self-driving capabilities and four-wheel steering, which gives the vehicle impressive maneuverability.

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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The secret behind Tesla’s Cybercab Gold goes well beyond just the color

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Tesla has spent years trying to engineer its way out of the automotive paint shop, one of the most expensive, space-consuming, and environmentally costly steps in vehicle manufacturing. With the Cybercab, Tesla confirmed on X this week that a new reaction injection molding process will embed color directly into the panel itself during production.

“Our new reaction injection molding (RIM) process shrinks Cybercab paint cycles from hours to minutes. This cuts those parts’ manufacturing and supply chain emissions by 35% and eliminating 100% of paint volatile organic compounds (VOCs) emitted in traditional paint methods.” noted Tesla.

While the RIM process isn’t necessarily new and has existed since the 1960s, what makes Tesla’s application notable is how it is being used specifically for exterior body panels that traditionally required a separate paint process after forming.

Tesla Cybercab stands to gain from new Trump autonomy rules

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Tesla’s RIM approach integrates the color directly into the panel material during the molding process itself. The pigment is part of the polymer mix injected into the mold, meaning the panel comes out of the mold already colored, with no separate paint application required. The clear coat or protective layer can be applied at the mold stage or through a much faster post-process than traditional multi-stage painting. Tesla claims this compresses what was a multi-hour paint cycle into minutes per panel.

Tesla’s obsession with killing the paint shop is one of the most consistent threads running through the company’s manufacturing philosophy going back years. As far back as 2018, Musk was trimming paint color options to simplify production, tweeting at the time: “Moving 2 of 7 Tesla colors off menu on Wednesday to simplify manufacturing.” Two years later, in a 2020 Automotive News interview, Musk laid out his broader vision, saying he believed Tesla factories could one day be 1,000 times more efficient than conventional plants, and pointing to the paint shop as one of the biggest sources of waste, cost, and complexity. The Cybertruck was the most extreme expression of that thinking. Tesla chose an unpainted stainless steel exterior partly because it would eliminate the need for a $200 million paint facility at Gigafactory Texas. The stainless approach proved harder and more expensive than anticipated, but the underlying ambition never changed. The Cybercab is what happens when that same ambition meets a manufacturing process that delivers on it.

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Tesla app update makes Robotaxi ownership make a lot more sense

Tesla’s app now shows a live indicator when your car is actively driving itself.

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A recent Tesla app update, released last week  (4.58.5), gives visibility on whether a vehicle is navigating in its semi-autonomous mode or being drive by a human driver. The updated app now displays a live “Self-Driving” indicator in bright blue text directly beneath the vehicle’s speed readout whenever Full Self-Driving is actively engaged, along with the signature glowing blue navigation path that FSD users see on the main touchscreen. It is a small visual update with meaningful implications for how Tesla owners monitor their vehicles remotely.

The feature was first spotted in the wild by X user Jordan Camina, who shared video of a Hardware 3 Model S displaying the new animation through the app while driving. That detail is significant because it confirms the update is not limited to newer HW4 vehicles. It works across hardware generations, and Tesla confirmed it will eventually support all vehicles regardless of chip platform once both the app and vehicle software are updated. The vehicle side requires software version 2026.20.6.1, which has reached nearly 40% of the fleet so far, as monitored by NotaTeslaApp.

The feature makes the most practical sense when viewed through the lens of Tesla’s expanding robotaxi operation. In a robotaxi context, the owner of a vehicle generating ride revenue has a direct financial and safety interest in knowing whether their car is operating under autonomous control at any given moment. The app’s new FSD indicator gives fleet owners exactly that visibility, the same way a logistics company monitors whether a delivery driver is following the planned route. It also carries implications for Tesla’s insurance model. Tesla’s own insurance product prices premiums in part based on FSD engagement rates, and real-time visibility into when FSD is active creates a feedback loop that could eventually tie directly into policy pricing. For individual owners who have opted their personal vehicles into the robotaxi network, the update effectively turns the Tesla app into a fleet management dashboard, one that tells you whether your car is earning money, whether it is driving itself to do it, and whether everything is operating the way it should from wherever you happen to be.

Tesla expands Robotaxi to Florida, marking its third state for autonomy

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As Teslarati has reported, Tesla launched unsupervised robotaxi rides in Miami this summer, a milestone that makes a remote FSD status indicator significantly more practical than a cosmetic feature. When a vehicle is operating as a robotaxi without a driver present, the owner or fleet operator needs a reliable way to confirm autonomy is engaged. The app now provides exactly that.

As noted by NotATeslaApp, The update also arrived alongside a hint buried in the same app version that Tesla plans to use the cabin camera to verify driver identity before FSD can be activated. Pairing identity verification with a live autonomy status indicator points toward the infrastructure Tesla is building for a fleet of driverless vehicles that owners can monitor the way you would track a package delivery.

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California snubs Tesla in its newly passed EV incentive that favors Rivian and Lucid

California passed a $135 million EV incentive that rewards Rivian and Lucid while sidelining Tesla

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California just drew a line in the EV incentive sand to put Tesla on the wrong side of it. The state recently passed a $135 million program offering first-time electric vehicle buyers a direct incentive with no application required, but the rules were written in a way that leaves Tesla at a structural disadvantage compared to Rivian and Lucid.

The program caps eligible vehicles at $50,000 for new EVs and $25,000 for used ones. That pricing threshold rules out a significant portion of Tesla’s lineup, though some lower-priced Model 3 and Model Y configurations would still qualify. California-based automakers are exempt from the price cap entirely, regardless of what their vehicles cost. Rivian, headquartered in Irvine, and Lucid, based in the San Francisco Bay Area, both benefit from that exemption. Rivian’s R2 starts at roughly $45,000 but has versions above the cap. Lucid’s Air and Gravity start at $70,990 and $79,990 respectively, well above any threshold a non-California company would face.

California hits Tesla Cybercab and Robotaxi driverless cars with new law

Tesla built its reputation and a significant portion of its early market share in California, where EV adoption has consistently led the nation. The company operates its original factory in Fremont, California, and the state was home to Tesla’s headquarters for most of its existence. That changed in 2021 when Tesla moved its corporate headquarters to Austin, Texas. Since then, the relationship between the company and California Governor Gavin Newsom has been openly adversarial, with Musk and Newsom trading public criticism on multiple occasions.

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California’s EV incentive landscape has shifted repeatedly in recent years, and Tesla has previously lost eligibility for state-level programs as its vehicles exceeded income-adjusted price thresholds. The federal $7,500 EV tax credit, which Tesla models have qualified for and lost depending on policy cycles, is no longer available after it expired without renewal, making state-level programs more meaningful to buyers than they have been in years.

The practical impact for buyers is more nuanced than the headline suggests. California residents purchasing a Tesla under $50,000 for the first time can still access the incentive. But the exemption written for California-based manufacturers is a structural advantage that rewards where a company plants its headquarters flag rather than where it builds its products, and Tesla moved that flag to Texas.

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