Those secrets were supposedly used at their new EV startup.
There was once a lot of hype around EV automaker Faraday Future. More recently, however, it’s fallen on some hard times. In fact, it’s debatable whether it’ll ever get back on its feet. And now it has a potential new problem. According to Electrek, Faraday Future has announced it has filed a lawsuit against two former executives who recently left the company to launch their own EV startup, called Evelozcity. Stefan Krause and Ulrich Kranz, who Faraday Future poached from BMW, are being sued for allegedly stealing trade secrets.
Faraday Future claims the pair began recruiting its employees for their new venture while still working for Faraday Future. Some of those employees apparently took with them confidential secrets and leaked them to Evelozcity. Part of the suit states that “Faraday Future (FF) is informed and believes that Evelozcity has deliberately taken and publicly disclosed some of FF’s confidential information in order to harm FF. Just recently, portions of a highly sensitive and confidential internal FF document that discusses, among other things, expected pricing and release dates, was leaked on the internet. That leaked document had been created by one of the first former FF employees who joined Evelozcity.
“On information and belief, Evelozcity encouraged the taking and the subsequent leaking of FF’s trade secrets in order to harm FF and to give Evelozcity an unfair advantage.” Faraday Future also claims to have forensic evidence backing up its claims. As for Evelozcity, it responded in a press release that “We do not have, nor do we need, any technology from Faraday Future. This complaint continues Faraday’s pattern of hurling false and inflammatory accusations against us. We will respond to the many recklessly inaccurate allegations in this desperate lawsuit at the appropriate time.” So why did Krause and Kranz jump ship in the first place?
There were apparently various disagreements with Jia Yueting, who currently has legal problems of his own. The Chinese Securities Regulatory Commission recently ordered him to return to China from the US to fulfill debt obligations. Prior to that, Faraday Future’s global CEO left the company not long before the company had a major at unveiling at CES in late 2016. Given everything you’ve read here and more, Faraday Future’s future (no pun intended) isn’t looking too bright.