Faraday Future is struggling after a boom and bust for the electric car venture. The Verge reports that some workers were furloughed, or shifted to mandatory unpaid leave, last week until more funding can be guaranteed.
As a result, employees have opened a donations page on Go Fund Me to support themselves. The page is run by Hector Padilla, a manager of tooling and equipment for the Body-in-White production in the Gardena, Ca., plant.
“With current unfortunate financial crisis with the company; this is to help all of those Manufacturing Team members that are in need of financial support because of lay off or mandatory furlough,” reads the description on the Go Fund Me Page.
The funds will be distributed to employees through a priority system based on whether they have families with children, lease or mortgage payments, or are on visas that would prevent them from getting another job in the United States.
Faraday Future has attempted to establish itself as a high-profile electric car company, but has struggled to hit the road. The company’s primary financial backer was initially Evergrande Group, a Chinese real estate conglomerate which was initially signed on for a $2 billion investment. After financial disputes over Faraday Future’s progress using the initial $800 million investment, an arbitrator ruled that Evergrande was not obliged to invest any more money.
Nick Sampson, one of the three founders, and Senior Vice President of Technology and Product Development Peter Savagian resigned last week.
Faraday Future is "insolvent in both its financial and personnel assets,” Sampson said in a public letter.
Employees will be furloughed or operate on a reduced salary depending on how long they have been with Faraday Future, according to an email from CEO Jia Yueting acquired by The Verge. Employees who have been with the company starting May 1 or later will be furloughed. Full-time workers who have been employed since before May 1 will operate on a reduced salary of $50,000. Hourly workers who have been at the company for more than six months will be employed at minimum wage.
Faraday Future’s first product was supposed to be the FF91 luxury electric car, a possible competitor for Tesla’s electric SUV. It was rumored to go on sale for $120,000 to $300,000.
As of Thursday, Nov. 8, the fundraiser for employees on mandatory furlough or reduced salary had raised $18,752 of its $50,000 goal. Visit it here.