Faraday Future goes belly-up

Faraday Future could never compete against Tesla
Faraday Future could never compete against Tesla

Electric vehicle startup Faraday Future officially shut down operations in California, both at its headquarters in Gardena, and at its factory in Hanford, following a series of unfavorable business developments, The Vergereports.

The company filed a lawsuit against EVelozcity in January, alleging the electric car company, founded by former Faraday Future executives, stole trade secrets. Both February and June saw Faraday secure crucial investment funding, which has kept the company afloat and seemingly on track to manufacture its FF 91 electric SUV by year’s end. After a debilitating battle against its main investor, Chinese real estate company Evergrande Group, however, Faraday Future is reportedly almost out of money.

Shutdowns of both the California headquarters and factory are leading workers to an indefinite period of unpaid leave, or “furlough," as CEO Jia Yueting explained. Until new funding is secured, operations at these two vital locations have ceased, with no sense of job security for any of its employees.

Faraday’s estimated $10 million monthly payroll previously resulted in layoffs and salary reductions. On top of which, one of Faraday Future’s three co-founders, Nick Sampson, resigned Tuesday. Last week, Faraday lost its senior vice president of technology and product development, Peter Savagian.

“The company is effectively insolvent in both its financial and personnel assets, it will at best will [sic] limp along for the foreseeable future," said Sampson. “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 devastating 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."

Sampson did add, however, that a potential upswing in financial backing would change his outlook regarding a return. “If circumstances should materially change, I certainly would consider returning to the company," he said.

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