Faraday Future “efficiently insolvent” says founder
The funds of Faraday Future are ultimately depleted and the EV startup “efficiently insolvent” founder Nick Sampson declared in an email to employees. Himself and senior product VP Peter Savagian have left the company and most workers have been sent on unpaid holiday.
The situation at Faraday Future has slowly reached breaking point after a dispute with their largest investor Evergrande Health remains unresolved. This had resulted in lay offs and salary cuts on all levels last week but has done little to keep the company alive.
Nick Sampson is one of three founders of Faraday Future and had written the email explaining his resignation himself. Obtained first by the Verge, the letter reads as follows:
“The company is effectively insolvent in both its financial and personnel assets, it will at best will [sic] limp along for the foreseeable future. I feel that my role in Faraday Future is no long [sic] a path that I can follow, so I will leave the company, effective immediately. I cannot continue knowing the devestating [sic] impact we are having on the lives of our employees, their families and loved ones as we as the [sic] ripple effect this will have on lives throughout our suppliers and the industry as a whole.”
With founder Nick Sampson having left, the controversial CEO Jia Yueting remains in charge. Evergrande had previously accused the chairman of having “manipulated” the board (we reported). Yueting in turn alleged that Evergrande was trying to take over Faraday’s IPs and as things stand, an agreement seems unlikely.
Still, Faraday tags along, feeding on further wage cuts. Employees who started working after May, 1, 2018 have been ordered to take a “furlough”. Workers who have been with Faraday Future longer will have the option to remain on board with a reduced salary of $50,000 per year. Hourly workers who have been with the company for more than six months will be allowed to stay on at minimum wage, employees told the Verge. Jia said the furlough will last at least through December, and is dependent on finding new funding for the electric vehicle company.
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