Faraday Future Sued For $1.8 Million Due To Unpaid VR Promo

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Electric car maker Faraday Future has been hit with a lawsuit alleging that the company failed to pay over $1.8 million for a virtual reality experience promoting its upcoming FF 91 SUV. The lawsuit was filed by a production company The Mill Group who claims it only received $20,000 from the $1,822,750 figure that was initially agreed upon with Faraday Future. The production firm claims that the US electric car manufacturer agreed to pay the sum in three installments but only ever managed to muster $20,000, leaving its outstanding debt at $1,802,750. The Mill Group has now sued Faraday Future for its remaining debt and related prejudgment interest.

Faraday Future's first commercial vehicle was unveiled at CES earlier this month but a source with knowledge of the matter stated that The Mill Group was working on a virtual tour of the FF 91 that was supposed to be shown to high-profile customers prior to CES. However, the project was never finished after Faraday Future failed to provide the company with funding. Both parties have yet to issue their public comments regarding the dispute. The Mill Group claims that Faraday Future originally approached it last August as it was looking to order a graphic presentation promoting the FF 91. The presentation was supposed to utilize VR and AR elements and The Mill Group estimated it will cost around $1.82 million which Faraday Future agreed to pay in three installments, the lawsuit alleges. As that apparently didn't happen and the US automaker repeatedly acknowledged its debt, the VR production company decided to sue.

The Mill Group's lawsuit is yet another sign of trouble for Faraday Future that's reportedly struggling with funding and has arrived at this year's CES in hopes of raising additional funds through $5,000 priority reservations for the FF 91. It remains to be seen whether the company managed to achieve that goal but if it hasn't, recent rumors suggest that it could go out of business in the coming months. Naturally, that wouldn't bode well for Faraday Future's plans to open a Nevada factory but it's possible that its partner LeEco would be willing to assist with additional funding if the company continues to face financial difficulties.

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