Faraday Future gets a lifeline as it settles months-long battle with Chinese investor

The war between electric car startup Faraday Future and its main investor, Chinese real estate conglomerate Evergrande, appears to be over. Evergrande announced on Monday that it has agreed to restructure its $2 billion investment in Faraday Future. The conglomerate will walk away with full control over Faraday Future’s efforts in China, and both sides will drop all ongoing litigation against each other, according to a release posted to the Hong Kong Stock Exchange.

Faraday Future will receive a bridge loan from Evergrande to “overcome [the startup’s] cash flow difficulties,” spokesperson John Schilling said in an email. Those difficulties involve Faraday Future almost completely running out of cash over the last few months, which...

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