California-based electric vehicle maker Faraday Future announced on October 7 that Sue Swenson, the firm’s executive chairperson, as well as Scott Vogel and Jordan Vogel, have officially resigned as directors and all other related positions within the company. Meanwhile, Adam He has been appointed as interim chairman. The company previously said that some directors had received death threats and baseless accusations, accelerating Faraday Future’s leadership transition.
As recently as September 26, Faraday Future announced that it had reached a final agreement with FF Top Holding LLC, a major shareholder of the firm, on financing and board restructuring. The two sides formally reached a package of governance structure adjustment agreements, including a restructuring of the board of directors. Sue Swenson, then the executive chairman, and Brian Krolicki, the former chairman, would resign, while founder YT Jia and the partner team would regain control of the company. At the same time, the company received up to $100 million in financing from Daguan and ATW Partners.
The previous announcement also indicated that, after Sue Swenson and Brian Krolicki resigned, the FF board of directors would undergo a major reorganization after the annual general meeting of shareholders, and the original nine board seats would drop to seven.
On August 16, Faraday Future released its financial report for the second quarter of 2022. The report showed that its operating loss was about $137 million, an annual increase of nearly 390%. The net loss was about $142 million, an increase of 168% year-on-year.
Regarding the losses, Faraday Future claimed that they were mainly due to an increase in engineering, design and testing (ED&T) services. The company said it had re-hired suppliers and made a large number of purchases for ED&T services to promote the development of the FF 91 vehicle model, as well as various employee-related expenses.
Increasing losses and the delayed mass production of cars have continuously increased pressure on Faraday Future’s cash flow. The company stated that it was seeking more funding to ensure operations can continue through the end of 2022 and beyond. According to the company’s financial and market conditions, it may take further cost-cutting measures, including layoffs. In light of these efforts, it no longer expects to start deliveries of the FF 91 in the third or fourth quarter of 2022.