To no one's surprise, Evergrande saw things differently. It said it had been manipulated into paying Faraday $700 million in July (at Jia's behest) after the automaker had burned through Smart Season's initial $800 million. Evergrande also accused Jia of trying to strip the company's rights to approve future financing deals.

We've asked Faraday for comment.

The arbitration battle hints at deeper issues. The Verge reported that Faraday was once again dealing with money problems, and hadn't paid some partner companies for weeks. It reportedly chalked up the lack of payments to "delays," but sources said that it was using the same stall tactics that it did when running low on funds in 2017. Some have gone so far as to file liens (claims to property until a debt is settled) in California, and a Nevada company has accused Faraday of owing $1.5 million for work done as far back as 2016. Combine that with reports of a fire that damaged the first pre-production car and Faraday may be in dire need of cash.

If those claims are accurate, Faraday is taking a major risk by trying to back out. While the Evergrande pact comes with some major sacrifices, such as giving away the rights to intellectual property and some assets, Faraday likely isn't in a position to cut off a financial lifeline. If it's going to start regular EV production later in 2018, it may need whatever help it can get.