Faraday Future was apparently on the verge of achieving series production of its FF 91 electric crossover, but it burned through its initial investment and its main investor refused to keep paying. The company has since been forced to furlough employees as it seeks new funding, and some of those out of work are now attempting to crowdfund money to support their families as Faraday sorts its stuff out.
Launched seven days ago on GoFundMe by Hector Padilla, which LinkedIn lists as a body-in-white tool and equipment manager at Faraday Future, the crowdfunding goal is to raise $50,000 by the end of this next week to support furloughed Faraday manufacturing employees’ livelihoods for “the next two months.”
According to the listing, the money will be divided up between manufacturing staff who are split into two priority levels, based on criteria like supporting additional family and children, housing payments, restricted worker’s visas, individual savings, short term or long term employment with the company, and pre-furloughed salary.
Priority one employees will receive a minimum of $2,000 a month, according to the listing, and priority two a minimum of $800 to $1,000 a month.
It’s safe to say it’s extremely unprecedented for the employees of a company that was already reportedly production ready on a new automobile, let alone one that costs hundreds of thousands of dollars and accepted paid reservations, to suddenly be forced to raise emergency funding for their livelihoods. Not to mention the whole crowdfunding process doesn’t have a great record of everyone involved feeling like they got a fair shake.
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The money, if raised, will be the responsibility of Padilla and another manufacturing staff member, Asim Sher, to distribute to their colleagues.
As previously reported by The Verge, FF CEO Jia Yueting attempted to back out of the financial investment deal with Chinese real-estate firm Evergrande, leading to a “stalemate.” Evergrande committed to $2 billion over three years for a 45 percent stake in the company, but FF already spent the first $800 million installment earlier in the year.
A Faraday representative previously told Jalopnik that all current employees, including those furloughed, would continue to receive healthcare and other benefits, and it plans on the furlough period to be over after December.
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As more executives jump ship, the company has brought in financial advisors to help it seek out new financing. How much money it would need is unclear, but the fallout with Evergrande happened over FF’s request for $700 million in additional funds, so that’s probably a solid guess.
Jalopnik has reached out to Faraday Future about the GoFundMe and will update if we hear anything.
Via GreenCarReports.
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