The automaker may have already exhausted its nine lives

Faraday Future’s struggles are showing no signs of slowing down. The beleaguered electric car maker is again laying off its employees and cutting salaries by 20 percent in an effort to keep the company alive. The latest development could throw a monkey wrench on its plans to roll out the first production versions of the FF91 SUV later this year. The layoffs take into effect next week as the company continues to desperately look for funding to keep its operations from completely falling apart.

Is Faraday Future On the Verge of Death? Layoffs and Salary Cuts Say Yes Exterior Computer Renderings and Photoshop
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It’s become a trend that when Faraday Future makes the news, it almost always has something to do with the company’s never-ending struggle to keep itself in business. The new round of layoffs provides us another look into the climate inside the company. It’s been that way since Faraday announced itself to the world, hyping a product to no end, even if the product hadn’t been developed yet.

The layoffs are bad enough, but those who manage to survive it aren’t throwing parties, either, because they may not have enough money for one, to begin with. In addition to the layoffs, the company also said in an email obtained by The Verge that hourly employee wages would be cut by 20 percent. Oh, joy.

The salary dump isn’t limited to just the employees, too.

Faraday CEO Jia Yueting is reportedly decreasing his salary to $1, while some members of the management team are taking pay cuts larger than 20 percent.

It’s not clear how many positions are being laid off, but it doesn’t paint a pretty picture when the company admits that it’s grasping for funds that aren’t there.

“The company is committed to monitoring its finances and will reevaluate this decision with the goal of restoring salaries once funding is available,” the email reads.

Is Faraday Future On the Verge of Death? Layoffs and Salary Cuts Say Yes Exterior Computer Renderings and Photoshop
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The austerity measures come on the heels of a legal fight between Jia and Chinese real estate giant Evergrande over an investment deal the latter agreed to with the automaker to keep Faraday afloat. As part of that deal, Evergrande pledged $2 billion to Faraday Future over the next three years, tied into a number of undisclosed production goals. In exchange for the bailout, Evergrande would receive a 45 percent stake in the company.

The first installment of $800 million arrived at the beginning of the year, but according to reports, Jia had spent nearly all of it by mid-year.

He then tried to get Evergrande to send an advance of $700 million, and when Evergrande shot that down, Jia took the matter to court, creating another rift between Faraday and an investor that swooped in at the 11th hour to keep the automaker’s lights open.

The legal battle between Faraday and Evergrande has not yet been resolved, but don’t expect a happy ending to come out of this. Whether it’s a case of mismanagement or just being drunk with ambition, it appears that Faraday Future is not long for this world.

It’s a shame because it had shown some promise at one point in its life. In hindsight, that promise feels like it was ages ago.

Further reading

Is Faraday Future On the Verge of Death? Layoffs and Salary Cuts Say Yes Exterior Computer Renderings and Photoshop
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Read our full review on the 2018 Faraday Future FF 91.

Source: The Verge

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