Electric car startup Faraday Future has been in financial free fall for months now. The company placed hundreds of employees on unpaid leave or furlough in October — and hundreds more followed two months later.
And things are not looking up. An internal email obtained by The Verge paints a gloomy picture: the company is still desperately looking for funding, and extending the furlough.
Desperate for Funding
The company has been hit with a round of high executives leaving the company last fall. Nick Sampson, a co-founder who quit in late October, wrote that “the company is effectively insolvent,” in an email to staff.
“Funding efforts have taken longer than the Company initially anticipated,” reads the email newly obtained by The Verge, describing how the company has been in a series of discussions with “potential investors” to raise money for “debt financing and equity funding.”