Faraday Future Extends the Furlough While Seeking Investment
Electric vehicle (EV) manufacturer Faraday Future (FF) said in an internal email on Tuesday that employees on unpaid leave could no longer return to work on March 1 as planned, according to American news site The Verge.
SEE ALSO: Faraday Future Listed Among the 2019 Best Tech Startups in California by Tech Tribune
Due to cash flow problems, the California-based EV maker had to cut salaries, lay off its staff and place hundreds of employees on unpaid leave last November and December. The Verge said only 250 employees escaped the layoffs and furloughs as of December.
Now, when it’s time to bring those on leave back, FF decides to extend the furlough, but did not say for how long.
winter performance test of FF91 (Source: Faraday Future)
The internal email also reveals that FF is having serious discussions with potential investors to facilitate asset-based debt and equity financing. But the process of funding will take longer than expected.
According to Chinese media site The Paper, the company has recalled 72 employees since the layoffs and furloughs. It now has over 400 employees in the United States and 1000 globally. The company will bring back more staff as its financial situation improves over time.
Founded in 2014, FF aspires to design and manufacture luxury electric cars. Its first flagship model FF 91 completed its first pre-production last summer and was rumored to start delivery this year. However, the company has been caught in financial turmoil since disputes with its main investor Evergrande.
Featured Image Source: Faraday Future
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