Faraday Future loses co-founder and senior product VP
Faraday Future, the Chinese-backed electric vehicle company, added to a string of bad news about investors and layoffs with today’s resignation of its co-founder Nick Sampson. Its senior vice president for global product and technology, Peter Savagian, stepped down too, according to The Verge.
"Recent actions taken by Evergrande is causing FF to experience extraordinary financial hardship," the company said in a statement Tuesday. "The investor has intervened in the company's capital planning and is preventing FF from utilizing our assets, which requires FF to take some very difficult yet necessary actions," the company said.
If you haven’t been paying too much attention to the company that showed off a 1,050-hp electric car in Las Vegas last year, it’s been having a rough go of it as of late.
In October of 2017 CFO and COO Stefan Krause resigned, which followed other losses including supply chain management head Tom Wessner and human resources VP Alan Cherry. In December 2017 its Chinese tech entrepreneur financial backer Jia Yueting was placed on a debtor blacklist by the Chinese government.
There was a bright spot. In July of this year it completed a body-in-white, aka the engineless, trimless, wheelless skeleton structure that will be used in production, and was planning to offer its first cars in December. Faraday’s senior VP of manufacturing Dag Reckhorn even took a victory lap.
"There is no question that this team and our suppliers have faced many significant challenges in getting FF 91 to this point, and even slightly ahead of schedule," said Reckhorn. "This is really a huge accomplishment over these past two years. All while focusing on the true luxury and quality of the final product. Our constant focus on teamwork, avoiding functional ‘silos’, has paid off."
To October of this year, company founder Jia Yueting entered arbitration with financial backer Evergrande Health, a branch of Evergrande Group, owned by Hui Ka Yan. Yan had pledged a $2 billion investment in the company. Then a week ago, it laid off some employees and cut other’s salaries by 20 percent.
It was ruled at arbitration that Faraday can seek other sources for funding, which we’re assuming it will do. It did, however, ask some employees to take an unpaid leave of absence for November and December.
“We anticipate the furlough to last through the end of December 2018,” the company said.
We will continue to follow this story, if for no reason other than the possibility of feeling what 1,328 lb-ft of electric torque is like off the starting line.