The EV startup Faraday Future has made it clear that their employees who were on unpaid leave since December 2018 won’t be back to work by March 1 st as planned. The Verge got its hand on an internal email which stated that the employees who were furloughed won’t be taken into the job as of now.
The company was struck in financial turmoil since its fight with Chinese Investor Evergrande. Evergrande was one of the highest investors in Faraday Future, and the company has also committed to investing 2 billion USD. They released the first installment of payment 800 million USD back in the end of 2017 and Faraday Future used it all by the middle of 2018. They started asking Evergrande to give advance installment of the other half of the remaining 1.2 billion USD whereas Evergrande was reluctant to do that.
This lead to a dirty public war which leads to several layoffs, pay cuts, and furloughed employees. Since last October the company has been facing extreme financial issues, and the headcount of Faraday Future has dropped from 1000 to 600 by November. There are only 250 employees who escaped the pay cuts, layoffs, and furloughs.
Although the two companies came to a truce in the end of 2018 and Evergrande allowed Faraday Future to pitch in other investors, no other company out there is ready to invest in it.
This situation has led to the resignation of the co-founder of company Nick Sampson and EV pioneer Peter Savagian. Established in 2014, Faraday Future spent some years in designing the cars that are speeder than Teslas. The company was aiming big and has spent a good amount of time in designing the electric vehicles, but the financial condition that hit them in 2018 has shaken the things up completely for the company and its cars.