Not long ago, Faraday Future began to build and create electric cars that could be exactly what we would be blown away by.
Right now, this embattled electric car startup is one that has hit the skids and is ready to move toward a reduction in many areas of the company. After a meeting with its lifeline investor in Hong Kong, Evergrande Health, the team at Faraday Future is getting ready to make some serious cuts in order to try and stay afloat for a bit longer and hopefully, offer us some models for the future.
The Cuts Begin to Show a Rough Future
The first part of the changes in this company will include the reduction of some of the salaries around the company. The executive team will take a cut of at least 20 percent, which several of the executives choosing take even larger pay cuts. The hourly employees will also see a cut of wages by 20 percent and the CEO will only take a salary of $1 for the next year. These changes are only the beginning of a rough time for the company that hopes to make a turn in the other direction soon.
While there hasn’t been any announcement as to the number of layoffs that will take place at Faraday Future, one bright spot has been found in the message to the company. In the widespread email that was sent out for employees to be informed as to what will happen, the company stated they would fully restore salaries and wages once funding becomes available. This message certainly tells you that the Faraday Future team fully expecting to see success in the future and that this is a bump in the road for this upstart company.
Funding Is a Continuous Problem for Faraday Future
Since the company was founded, it’s been facing funding issues with major uncertainties in 2017 and it nearly failed to make payroll before it was able to make the deal that brought Evergrande Health in as the main investor. This Chinese conglomerate offered up $2 billion over the next three years for a 45 percent stake of the company, but this company continues to face troubled times. This year, Faraday received the first $800 million but that amount was spent in six months. When an advance for the next installment was requested, this request was denied.
Will Faraday have a Future
It’s unclear whether or not this upstart EV company will have a future at all, especially when its major investor isn’t willing to offer additional funds ahead of schedule. Unless another investor is found for the company to be able to continue to move forward, there might not be much of a future for this organization at all. Hopefully, Faraday Future will find the funding needed to be able to become a company that can rival Tesla in the electric vehicle marketplace, but right now things don’t look very good at all.