Faraday Future Faces Financial Turmoil

The outlook for Faraday Future which had created quite a splash on the automotive scene with its FF91 prototype appears to be bleak.

The electric car startup announced through a company spokesperson that it has laid off part of its workforce. For those who remain, it will be slashing their wages by 20 percent. The development was first reported by The Verge. The company has recently been at odds with its primary investor.

The company’s employees were informed of the decrease in their wages through an email from CEO Jia Yueting. He himself will now henceforth be taking a salary of USD1, and a few senior executives are taking a paycut of more than 20 percent.

A few weeks ago, Faraday Future was accused of trying to backing out of a deal that it had reached with a Chinese company called Evergrande Health Industry Group. This development further dims the prospects for Faraday Future which has recently been in the news for all the wrong reasons like CEO issues and exodus of senior managers. Faraday’s Yueting said that Evergrande failed to honor the financial commitments it had made to Faraday while Evergrande said that Faraday had manipulated it into providing funds to the tune of USD 700 million to save it from bankruptcy.

Faraday Future is also facing pressure from its suppliers for outstanding payment. The statement issued by the company has an optimistic tone, but the financial outlook certainly appears to be bleak.