Co-founder’s exit is another nail in the coffin of the beleaguered automaker

Nick Sampson, one of the three co-founders of Faraday Future, has quit the company. Sampson’s departure comes a day after Peter Savagian, the company’s senior vice president of technology and product development, made his own beeline for the exits. If these departures aren’t bad enough, Faraday CEO Jia Yueting announced the anyone who started working for the company after May 1 would be placed on unpaid furlough. According to a report from CNBC, the furloughs begin in November, becoming the latest in a series of layoffs and salary cuts that have happened in recent months.

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Faraday Future is not long for this world. It’s one thing to struggle as a company, it’s another thing entirely to drag everyone down with it. Nick Sampson’s departure is particularly troubling because he’s been there since the beginning. It’s even more troubling when Sampson sends an e-mail, saying that Faraday Future is “effectively insolvent in both its financial and personnel assets.”

We know about the company’s financial struggles, but when employees start bearing the weight of its inadequacies, that’s venturing past the point of no return.

It’s hard to blame those who have left the company because, in Sampson’s words, Faraday, at best, will “limp along for the foreseeable future.” He saw the writing on the wall. So did Peter Savaging, the company’s senior VP of technology and product development, who left a day before Sampson called it quits. Sampson and Savaging aren’t the only two execs to leave Faraday in the last year. Chief designer Richard Kim left the company late last year. Chief Financial Officer Stefan Krause left shortly after Kim. So did Chief Technical Officer Ulrich Kranz. All three are former execs from BMW. Now its Savagian and Sampson. These aren’t isolated cases anymore. This is a mass exodus of some of the best minds in the business. Is the writing on the wall not clear enough yet?

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Those who are sticking around aren’t going to find pots of gold at the end of the rainbow, either, because there’s no rainbow, to begin with. An e-mail obtained by The Verge from CEO Jia Yueting contained more depressing news for employees who are still working for the company.

According to the e-mail, those who started working for the company after May 1 would be placed on an unpaid furlough beginning in November.

Those who joined the company before that date have the option to stay with the company, but if they exercise that option, their salaries would be cut to $50,000 annually. That’s still a lot of money compared to blue-collar workers who will only receive minimum wage, provided that they’ve been with the company for more than six months. If you don’t meet these requirements, then you’re piss out of luck.

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All this trouble also comes at a time when the company is in the middle of a legal fight with China’s Evegrande Health Industry Group over the latter’s investments in the company. The automaker scored a small victory last week when the Hong Kong International Arbitration Centre allowed it to seek funding from other firms, but even if it does get the opportunity to look for more investors, who, in their right mind, would want to get on board this sinking ship?

At some point, it’s smart to recognize what’s in front of everyone.

Faraday Future is a failure, and it’s going to take a lot more than new investments to get it back on track.

The company will spin things positively to stay afloat, but not even the world’s best spin doctors can change the company’s perception, especially after one of its three co-founders no longer wants anything to do with the automaker.

Faraday Future is sinking, and it’s past the point of saving. It’s time to let it rest so that everyone can move on with their lives.

Further reading

It's Time To Say Goodbye to Faraday Future 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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