Faraday Future loses final founding executive (Updated)


Artist’s impression of Faraday Future’s proposed plant in Hanford, California

Artist’s impression of Faraday Future’s proposed plant in Hanford, California

Faraday Future is a startup electric carmaker founded by a Chinese investor and five executives with experience in building cars and electric cars.

Now that the company seems to be in its final throes of its latest financial crisis, the last of those executives has reportedly left the company.

READ THIS: Does Faraday have a Future? Latest financing disrupted—again

Dag Reckhorn, the company's senior vice president of global manufacturing resigned last week, according to a report in the Verge, which has been tracking the company closely.

In his resignation letter, Reckhorn cited legal concerns, reportedly related to directors' and officers' insurance, which recently lapsed, two anonymous former employees told the Verge. Directors' and officers' insurance would cover company officers such as Reckhorn from lawsuits such as those that might result from the recent layoffs at the company.

Faraday Future FF91 prototype

Faraday Future FF91 prototype

In October, Faraday Future furloughed all manufacturing employees that started after May 1, which was before the company received its latest round of funding to start manufacturing its $300,000 luxury electric car.

DON'T MISS GM EV1 exec leaves Faraday Future (Updated)

Other employees have been reduced to half salaries or laid off. The Verge has reported that there are now as few as 10 employees working at the Hanford, California factory that it bought last year. 

Now none of those are among the executives with both manufacturing experience and the original vision for the company. Former senior vice president Peter Savagian was descried as the backbone of the company and former chief engineer for the GM EV1 left in early November. He was followed last week by co-founder Nick Sampson, who said in his resignation letter that the company is "effectively insolvent."

CHECK OUT: Faraday Future gets a $2 billion lifeline to build expensive crossover

After receiving a new round of investment from a Chinese investment company in June, intended to help the company start production, Faraday began producing prototypes, but did not make it to full production. The Chinese investors withheld a second round of funding, leading to the company's current financial crisis.

The company has accused investor Evergrande Health of starving Faraday Future for funding in a takeover bid, which Evergrande denies.

Update: Patrick De Potter, CEO of Dutch blockchain company EVAIO Blockchain announced on Tuesday that the company was in talks with Faraday Future to launch a cryptocurrency to fund the ailing electric automaker. According to a report on Technode, De Potter said on LinkedIn that the fundraising efforts could be worth $900 million. A Hong Kong arbitrator, however, ruled last month that Faraday Future may seek outside funding of only up to $500 million, which the company says the final few executives at the company are pursuing.

Faraday Future responded that they were not in discussions with EVIAO Blockchain.

 
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