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NewsFaraday Future Puts More Employees on Furlough as Financial Situation Worsens

00:45  07 december  2018
00:45  07 december  2018 Source:   jalopnik.com

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Electric car startup Faraday Future announced Tuesday that it’s planning to furlough more employees due to its worsening financial condition “This was an extremely tough decision to make, and we recognize the emotional stress and financial strain this puts on people’s personal lives,” the

Electric car startup Faraday Future announced Tuesday that it’s planning to furlough more employees due to its worsening financial condition, which That means “we unfortunately must take further cost-reduction measures to deal with the current financial situation , which includes putting

Faraday Future Puts More Employees on Furlough as Financial Situation Worsens© Photo: Faraday Future The FF91

Electric car startup Faraday Future announced Tuesday that it’s planning to furlough more employees due to its worsening financial condition, which stems from an ongoing battle with a Chinese investor.

Things Are So Bad at Faraday Future There's a GoFundMe For Employees

Just this summer, Faraday had apparently been on the cusp of launching pre-production of its high-powered FF 91 electric crossover, but the investor—Chinese real estate company Evergrande—has since reneged on an investment deal, according to the startup. Evergrande promised $2 billion to launch the production facilities, including an $800 million initial investment.

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Faraday Future 's struggles only appear to be getting worse. The Verge has obtained an email indicating that company co-founder Nick Sampson of taking the furlough for the same period of time. Employees who joined FF after May 1 must take a furlough . For those employees who started with

Electric car startup Faraday Future plans to furlough hundreds more employees as a result of an ongoing cash crunch during a battle with its main — Faraday Future (@ FaradayFuture ) December 4, 2018. But the relationship turned sour this summer, according to arbitration documents recently

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Faraday quickly burned through that cash, which precipitated the legal battle both sides now find themselves in, with Faraday trying to get clearance to seek funding from other investors to get back on its feet.

But while the company works to sort out the legal issues in court, it doesn’t expect a decision to come for another two-to-three months.

That means “we unfortunately must take further cost-reduction measures to deal with the current financial situation, which includes putting additional employees on furlough beginning this week,” the company said in a statement on Twitter. (The Verge, citing multiple sources, pegged the total number of furloughed employees at 250.)

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Faraday confirmed that it has put additional employees on furlough in a statement to Business Insider, but the automaker did not disclose the number of employees that were affected. The automaker has struggled to build its planned FF91 electric SUV amid financial concerns.

Electric vehicle startup Faraday Future is planning to furlough hundreds of its employees as a result of an ongoing dispute with the company's primary Update from Faraday Future on current business operations. pic.twitter.com/1psfWiFS0c. — Faraday Future (@ FaradayFuture ) December 4, 2018.

“This was an extremely tough decision to make, and we recognize the emotional stress and financial strain this puts on people’s personal lives,” the statement said. Last month, a GoFundMe fundraiser was launched to pay for employee health care bills.

Ever the hopeful bunch, Faraday said its executive team has received interest from investors “around the world” and plans to continue on its long-shot bid to launch production of the FF 91. The company, very optimistically, says it hopes to resolve the funding issue within two-to-three months.

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