Data analytics giant Palantir has acquired a significant stake in embattled electric vehicle manufacturer Faraday Future, according to recent regulatory filings. The transaction, valued at approximately $2.4 million, grants Palantir over 800,000 shares in the EV startup, equivalent to a substantial 8.7% ownership stake.
The deal stems from a settlement reached earlier this year between the two companies, following a dispute over unpaid services provided by Palantir to Faraday Future. The data-mining company had alleged a breach of contract, claiming $41.5 million in damages. The parties ultimately agreed to a settlement, with Faraday Future pledging to pay Palantir $5 million, partially in company stock.
Faraday Future’s struggles are well-documented, with the company delivering only a handful of vehicles to date and constantly seeking new funding sources. Its decision to go public through a special purpose acquisition company (SPAC) merger in 2021 raised $1 billion, but the company’s fortunes have since declined. Palantir, which invested $25 million in the PIPE portion of the merger, had also entered into a commercial agreement with Faraday Future to provide data analytics services.
Despite its new stake in the company, Palantir is unlikely to exert significant influence over Faraday Future’s operations. The data-mining company has indicated it will treat its ownership stake passively, suggesting it will not seek to direct the EV startup’s business decisions. Instead, the transaction serves as a peculiar footnote to the boom-and-bust cycle of EV startups that characterized the past few years.
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