Faraday Future Announces New Executive and Funding Following 25% Pay Cut
Faraday Future, a California-based electric vehicle maker, on October 26 announced the appointment of Yun Han as Chief Accounting Officer and interim Chief Financial Officer, as well as new financing progress from an affiliate of ATW Partners LLC.
The company said it has received all of the previously announced $55 million in financing (other than $5 million in additional bridge notes) from an affiliate of ATW Partners LLC as expected, and that it anticipates receiving the first $10 million under the previously announced $60 million financing agreement this week.
Prior to joining Faraday Future, Han was Senior Vice President and Chief Accounting Officer at Romeo Power, a battery technology company. She was also previously Vice President and Controller at Immunity Bio, and has held senior accounting and finance positions at various companies.
The automaker, which was founded by Jia Yueting, was once on the verge of bankruptcy. However, last month, Jia led FF Top Holding LLC, a major shareholder of the firm, in a successful reorganization of the company’s board. Under the arrangement, Sue Swenson, the executive chairman, and Brian Krolicki, the former chairman, would resign, while Jia and the partner team would regain control of the company.
Faraday Future announced a pay reduction plan in an email to employees last week, with all staff taking a 25 percent pay cut lasting from November 1 to the end of the year. The company also laid off dozens of employees earlier this month. It recently reported holding $39 million in cash as of September 21, down from about $47 million at the end of August.
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On August 16, the firm’s second-quarter financial results showed that its operating loss increased to about $137 million in the second quarter of this year from about $28 million in the same period last year, and its net loss increased to $142 million from $52.775 million in the same period last year. As a company founded eight years ago, Faraday Future has yet to officially deliver its first car, and in a filing with the US Securities and Exchange Commission, the company made clear that it doesn’t plan to start delivering its first electric car, the FF 91, in the third or fourth quarter of this year. This means that FF 91’s delivery has been delayed again.
Faraday Future posted a photo of its production line on October 18 and said the FF ieFactory continued to install production equipment and begin pre-production testing. Company officials also showed off an FF91 frame on the assembly line as proof that it was actually making cars.