Faraday Future Employees Will Not Go Back To Work Anytime Soon As Money Troubles Continue
Faraday Future is back in the news today, and once again its related to money problems as employees furloughed back in December will not be going back to work anytime soon.
According to an internal email sent out this morning which was obtained by The Verge Faraday Future is extending the employees furlough for an unknown amount of time. Originally employees were supposed to go back to work on March 1st, but Faraday Future has been unable to secure the necessary funds to accomplish that.
Faraday Future has been in financial trouble ever since mid-2018 when the company began fighting with their biggest investor Evergande about their funding.
Evergrande, a Chinese real estate giant, committed initially to $2 Billion in funding for Faraday Future. By mid-2018 Faraday Future had already burned through $800 million of that funding and was requesting access to the remaining $1.2 billion. Evergrande refused, and the company came to a standstill.
Since Faraday Future couldn't access their additional funding, they began to cut employees pay, and following that hundreds of employees were placed on unpaid leave. Around the same time as employees were being laid off and furloughed many top executives of the company began jumping ship.
In October Faraday Future and Evergrande reached a deal to end their investment contract and Faraday Future began looking for a new investor. So far Faraday Future has been unable to obtain the necessary funding required to bring their employees back to work.
Faraday Future was founded back in 2014 with the goal of creating a new line of electric vehicles. Their first vehicle the FF91 was shown off at CES -----2017---- with mixed reaction and limited pre-orders placed. The SUV looked good, with great features like a faster acceleration than Tesla, but it also came with a higher price tag close to $200,000 USD.
With this recent internal memo leaking and the inability to find a principal investor, the future seems very grim for Faraday Future. They have always looked like a troubled company, and 2019 may be their last.
Source: The Verge