In the competitive world of electric vehicles (EVs), investments and strategic partnerships are crucial. In 2017, Lucid Motors, an emerging player in the EV sector, was navigating a challenging landscape as it sought to secure a significant Series D funding round. However, internal hurdles and external influences complicated the process.
David Stern, a businessman with limited public presence, recognized an opportunity within this complex scenario. He reached out to Jeffrey Epstein, a controversial financier, to potentially resolve the funding stalemate facing Lucid Motors.
According to a trove of documents recently released by the Department of Justice, Stern emailed Epstein about Lucid Motors’ funding situation. He mentioned that Ford was poised to lead a $400 million Series D round, but Jia Yueting, the founder of Faraday Future and a significant stakeholder in Lucid, was creating obstacles due to his financial troubles. Stern wrote to Epstein, “Ford will likely be lead in $400m Series D in Lucid. Big strategic move,” highlighting Jia’s urgent need to offload his shares to cover payroll for his other ventures.
The documents indicate that Stern had a history of pitching EV projects to Epstein. He had also proposed investments in Faraday Future and Canoo, another EV startup. However, there is no evidence suggesting Epstein invested in these companies. Lucid eventually secured over $1 billion from Saudi Arabia’s sovereign wealth fund in 2018, while Faraday Future received backing from Evergrande, a Chinese real estate giant, in late 2017.
The revelations offer a glimpse into Epstein’s connections with Silicon Valley startups prior to his arrest and subsequent death in 2019. They also shed light on his working relationship with Stern, who referred to Epstein as “my mentor” in the emails.
A ‘ghost’ of a businessman
Stern, often described as a digital ghost due to his minimal online footprint, has been linked to various high-profile business and political figures. He was notably involved with Prince Andrew’s Pitch@Palace startup contest. Stern’s association with Epstein dates back to 2008, around the time Epstein faced legal issues in Florida.
Stern’s background includes education at the University of London and Shi-Da University in China. He held roles at China Millennium Capital and Deutsche Bank’s Shanghai office and founded Asia Gateway, a company advising on growth strategies and investments in China. These roles facilitated his connections with influential figures, including Li Botan, a key investor in Canoo.
While it’s unclear if Epstein ever invested in Stern’s ventures, their correspondence reveals a decade-long professional relationship. Epstein criticized Stern for inadequate business preparations at times, emphasizing precision in deals.
Stern’s ventures spanned various sectors, from EVs to potential acquisitions in media and finance, including a proposed purchase of Deutsche Bank. He also flaunted ties with prominent personalities, such as Jack Ma and Mohamed bin Zayed Al Nahyan.
Going electric
In 2017, Stern was keen to capitalize on the burgeoning electric mobility market. He attempted to engage Epstein’s interest in Faraday Future and later proposed an investment in Lucid Motors. Stern’s strategy involved acquiring Jia Yueting’s stake in Lucid through a fund called Monstera, a move he described as a “fire sale.”
Despite these efforts, Ford withdrew from the deal, and Lucid secured its funding from Saudi Arabia in 2018. Stern’s involvement in EV ventures continued with Canoo, where he contributed financially alongside other investors.
While Epstein did not invest in Canoo, he pitched the startup to influential figures, including Deepak Chopra and Sheikh Jabor al Thani. However, Epstein’s arrest in 2019 marked the end of these discussions.
In the months leading to Epstein’s arrest, Stern remained engaged in the EV sector, forwarding discussions on electric cars and reaching out to potential investors. His last known correspondence with Epstein included a query about involving Warren Buffet in the electric car future.
Original Story at techcrunch.com