Newly released documents tied to the late financier and sex offender Jeffrey Epstein have cast a revealing light on the high-stakes, often opaque world of Silicon Valley’s electric vehicle boom. An investigation by TechCrunch into the files has uncovered how a mysterious German businessman named David Stern actively pitched Epstein on investments in several prominent EV startups, including Faraday Future, Lucid Motors, and Canoo, exposing the hidden networks that operated behind the scenes during a period of intense investor hype.
The Mysterious Middleman
The story hinges on David Stern, a figure who, until now, was largely an enigma. Stern was a founding investor in Canoo, an EV company that has since gone bankrupt, but little was known about his background or how he entered the competitive EV investment scene.
Reporters had previously noted his connections to China and a rumoured closeness with Prince Andrew. This proximity to the British royal, a known associate of Epstein, led journalists to search for Stern’s name in the recently released files. The search revealed a decade-long relationship with Epstein, starting in 2008 when Stern approached him seeking investment partners for deals in China. Over the years, Stern became a close associate, frequently bringing tech investment opportunities to Epstein.
Circling The Deals
The documents show that between 2016 and 2017, Stern repeatedly tried to bring Epstein into the EV space. He pitched a potential multi-hundred-million-dollar investment in Faraday Future and later attempted to orchestrate a deal to acquire a 30% stake in Lucid Motors.
At the time, Lucid was struggling to raise its crucial Series D funding round, a situation that created an opportunity for investors to acquire a stake at a potentially discounted price. Emails between Stern and Epstein reveal discussions about gathering information from Morgan Stanley on a potential acquisition offer for Lucid from Ford. Their conversations centered on whether to make a long-term investment or to orchestrate a quick flip for a large profit if Ford’s acquisition materialized. While Epstein never ultimately invested in these EV companies, the communications provide a stark look at the kind of opportunistic dealmaking that was rampant during the sector’s gold rush.
A Lesson In Due Diligence For MENA Investors
These revelations hold particular significance for the MENA region’s investment community, which has become a major force in global technology and mobility. The most direct connection is Lucid Motors, which was later famously rescued and significantly funded by Saudi Arabia’s Public Investment Fund (PIF). The Epstein files offer a prequel to PIF’s involvement, illustrating the company’s precarious financial state and the shadowy figures that were circling it just before major institutional capital stepped in.
For MENA-based VCs, family offices, and sovereign wealth funds, the story is a powerful reminder of the critical importance of deep and thorough due diligence. It highlights that even in highly-publicized sectors, the early funding stages can involve complex and sometimes unsavoury networks. Understanding the complete history of a company, including the early players and failed deals, provides crucial context that can inform better investment decisions in today’s equally fast-moving sectors like AI.
About Lucid Motors
Lucid Motors is an American luxury electric vehicle manufacturer headquartered in Newark, California. The company was founded in 2007 as Atieva, initially focusing on building electric vehicle batteries and powertrains for other manufacturers. It rebranded to Lucid Motors in 2016 and announced its intent to develop its own high-performance luxury electric vehicle. Its first car, the Lucid Air, entered production in 2021 and has received acclaim for its range, performance, and design.
Source: TechCrunch
