The Chinese mobile gaming company is investing $600 million in Los Angeles-based Faraday in a move to sell the company’s V9 luxury electric vehicle in China. The companies expect the venture to produce 300,000 cars per year starting in 2020 with each partner holding a 50% stake.
The company will try to avoid the fate of Faraday’s previous partner. Last year, real estate company Evergrande Group agreed to a $2 billion deal that fell apart after the privately held Faraday spent its initial $800 payment too quickly, according to The Verge. The9 is offering an initial payment of 5 million.
Shares of The9 plummeted nearly 12% to $2.23.
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