The founder of Faraday Future leaves and declares that the company is "effectively insolvent"

• The electric vehicle start-up Faraday Future is about to run out of money because it forces some workers to take unpaid leave, reports The Verge.
• The CEO of Faraday Future, Jia Yueting, said in an email to employees that workers who started on or after May 1 of this year would be placed on unpaid leave until the builder receives new funding.
• Nick Sampson, one of the builder's founders, reportedly resigned on Tuesday, saying Faraday Future was "effectively insolvent" in an email to employees.
• Faraday Future did not immediately respond to Business Insider's comment request.

According to the publication, the automaker has shut down some operations at its headquarters in Gardena, California, and at its Hanford, Calif. Plant. Faraday Future CEO Jia Yueting reportedly told employees that workers starting on or after May 1 of this year would be on leave without pay until the builder received new funding. Full-time employees who started before May 1 may continue to work at a reduced salary of $ 50,000 per year. Hourly employees who have been working for more than six months may choose to stay at Faraday Future at the minimum wage, Yueting was quoted as saying.

Nick Sampson, one of the builder's founders, reportedly resigned on Tuesday, saying Faraday Future was "effectively insolvent" in an email to employees.

"The company is effectively insolvent in both financial resources and personnel, it will be at best [sic] drinks along for the foreseeable future. I think my role in Faraday Future is not long [sic] a path that I can follow, so I will leave society, from now on, "Sampson would have written.

Faraday Future did not immediately respond to Business Insider's comment request.

A representative of Faraday Future told Business Insider last week, following a report from The Verge, that it would reduce the wages of hourly and salaried employees by 20% while laying off an undisclosed number of workers. The representative added that Mr. Yueting would reduce his salary to 1 dollar, some members of the manufacturer's management team reducing their wages by more than 20%.

Faraday Future was founded in 2014 and is struggling to build its future planned FF91 electric SUV due to financial concerns and a battle against funding with the Evergrande Health Industry Group investor. Faraday Future has faced lawsuits and supplier privileges that claim they have not been paid, and the first pre-production version of FF91 caught fire hours after being shown to employees and their families, according to The Verge.

Yueting, who is also the founder and chairman of the Chinese technology company LeEco, had blocked $ 182 million of assets frozen by the Chinese government because of unrealized loan repayments.