Faraday Future hasn't been looking good these last few days. And now, it's about to get worse. Co-founder and senior VP of product R&D and engineering Nick Sampson has stepped down from his role at the company.
The electric automaker lost the former Tesla executive, according to a report on Tuesday by Reuters. This marks the second of three founders to have jumped ship from the company, leaving CEO Jia Yueting remaining.
The financial situation has been a rough one as of late. The company has been seeing layoffs, pay cuts, and even requesting that staff take unpaid leaves. The primary source of woe has been Evergrande Health Industry Group Ltd, the key shareholder in Faraday. They were in line to invest $2 billion into Faraday, starting with a $700 million starting payment. To prepare, Faraday went on a hiring spike to kickstart production of their first model. Evergrande never paid up, however, citing unmet obligations as the reason.
In layman's talk: The electric car company was promised a lot of money to do what they do, so Faraday got started. Time has passed and they still haven't given them the money promised. They're working to manage the difficult situation, though the loss of the founders is a major red flag in survivability.
I hope you weren't looking forward to owning a Faraday.
Co-Founder Leaves Faraday After Severe Financial Turmoil
Posted By: LizardRock | 0 Comment(s)
Posted On: Nov 01, 2018 @ 03:49 PM