Beijing time on October 31, according to the US technology media the Verge, Faraday Future is almost exhausted after a dispute with major investor Evergrande Health. The company is taking more stringent measures to prevent the company from closing before new investment arrives. But last week's layoffs and pay cuts were not enough to offset the monthly salary of about $10 million, so management decided to close part of the company's headquarters in Gardena, Calif., and the Hanford, Calif., facility this week.
FF CEO Jia Yueting said that employees will be given unpaid leave or 'vacation' before getting new funds.
On Monday, one of the three founders of FF, long-time GM executive, Peter Savagian, senior vice president of technology and product development at Faraday Future, left the company.
To make matters worse, Nick Sampson, one of the three co-founders of Faraday Future, also resigned on Tuesday. At this point, only three of FF's co-founders are Jia Yueting.
Last week, it was reported that Faraday's main financial supporter, China's real estate giant Evergrande Group, had a conflict with Faraday's future, which led to layoffs and pay cuts.
'FF's financial and personnel assets are actually insolvent. In the foreseeable future, at best, it can only be delayed. I think my future role in Faraday is not a way I can go, so I will leave the company immediately. Sampson wrote. 'I don't know the company's negative impact on the lives of employees, their families and loved ones, and the chain reaction that will affect our entire supplier and the industry as a whole.'
Sampson added, 'If the situation changes substantially, I will definitely consider returning to the company.'
The CEO of Faraday Future (and the only founder), Jia Yueting, said in an email that all employees who started work after May 1 this year 'must take a vacation'. Full-time employees working at Faraday Future from May 1st Will have the option to stay in the company, according to current and former employees, the annual salary will be reduced by 50,000 US dollars.
As of July this year, FF has received the first batch of 800 million U.S. dollars from Evergrande. After the arbitration in Hong Kong, the remaining $1.2 billion in advance payment was rejected. The arbitrators did allow Faraday to seek up to $500 million in new investments in the future. But this needs to be approved by Evergrande. Jia Yueting said in an email on Tuesday that Faraday Future 'is currently in dialogue with investors from different backgrounds'.