Palantir Technologies disclosed an 8.7 percent stake in the electric vehicle startup Faraday Future, according to a regulatory filing on Tuesday, as part of a stock-for-debt settlement agreement between the two companies.
In a Schedule 13G filing with the U.S. Securities and Exchange Commission (SEC), Palantir reported it held 1.08 million shares of Faraday Future’s Class A common stock as of October 2.
The disclosure includes 827,526 shares that Palantir received as payment for outstanding receivables under an agreement reached between the two companies.
The deal follows a settlement from March in which the EV maker agreed to pay $5 million to Palantir in four quarterly installments in 2024.
Palantir invested $25 million in Faraday Future shortly before the electric vehicle startup went public in July 2021. At the time, Palantir announced it had also entered a commercial agreement to provide its data analytics software to the EV maker.
The company has recently delivered the third EV this year a few days after announcing plans to launch a sub-brand that will target vehicles priced below $30,000 and $50,000.
Year to date, Faraday shares have lost about 92 percent of their value based on Monday’s closing price of $2.33.
