Electric vehicle firm Faraday Future’s workforce, already significantly depleted, has been on unpaid leave since December, and won’t be returning any time soon, reports The Verge:
Faraday Future has been searching for new funding since last October, when it got into an ugly public fight with its biggest outside investor, Chinese real estate giant Evergrande. Evergrande committed $2 billion to the California-based EV startup at the end of 2017, but Faraday Future spent the first $800 million installment by mid-2018. When Faraday Future asked Evergrande to advance about half of the remaining $1.2 billion, Evergrande ultimately refused, locking the two in a power struggle that left the two in a power struggle that left the startup nearly out of money.
Faraday Future felt hopeless from the word go. I interviewed the (now departed) co-founder Nick Sampson at CES two years ago – he told me that they had ceased construction of their (doomed) factory in order to afford the glitzy CES launch event.
The Verge quotes an internal email sent by Sampson before his departure:
“The company is effectively insolvent. 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.”