In addition, Faraday Future also faces the risk of delisting.
Faraday Future decided to limit the powers of its founder, Jia Yueting, after completing a months-long internal investigation into fraud allegations.
According to the April 15 exposure documents, the eviction startup also placed one of its longest-serving executives on probation, while another has resigned.
Jia will continue to serve as Faraday's Future "Chief Product and User Ecosystem Officer" – a position he has held since 2019, when he ceded the ceoship to former BMW executive Bi Fukang. In the future, his work will be limited to the company's "product and mobile ecosystem" and its "internet, artificial intelligence and advanced R&D technologies." Faraday Future also said that Jia Yueting will no longer serve as the "chief product officer".
The Los Angeles-based company said Matthias Aydt, a board member and senior vice president of business development and product definition, will be on probation for six months. Aydt joined the company in 2016 but was re-employed on probation (although still retaining the board seat).
The company's vice president of global capital markets, Jiawei Wang, will resign. Wang Jiawei, a nephew of Jia Yueting, has been suspended without pay since Jan. 31.
Faraday Future said on April 15 that it had taken other "disciplinary action" and fired a number of other non-executive-level employees.
The sanctions stemmed from a previous internal investigation. The survey found that only a few hundred of the 14,000 FF 91 orders claimed by the company have actually been paid. Accordingly, in late March Faraday Future announced that it needed extra time to complete an internal investigation because the company's executives were suspected of misrepresenting misrepresentations to mislead consumers. Due to delays caused by internal investigations, the annual financial report could not be submitted on time.
The company said in February that it had also found that certain executives had misled investors about Jia's role in day-to-day operations, leading to a 25 percent pay cut for Bifukang and the dismissal of chairman Brian Crowlic as an ordinary member of the board.
The company disclosed in March that it was under investigation by the U.S. Securities and Exchange Commission (SEC) and received a delisting warning as the company had delayed filing its earnings report for the second time. The last time was the third quarter of 2021 earnings report, which also received a delisting warning from the US stock exchange.
Since faraday's establishment in 2016, the first car FF91 has not been mass-produced. On February 24 this year, the quasi-production car of FF 91 was officially rolled off the production line, and according to the previous commitments of Jia Yueting and current CEO Bi Fukang, the model will be officially mass-produced and delivered in the third quarter of this year.
On February 9, Faraday Future signed a contract with South Korean automaker Myoung Shin Co.Ltd. to announce that it will start production of Faraday Future's second electric model, the FF81, in 2024.
It should be noted that even if it achieves mass production, if it does not have a large enough order volume, it is still not enough to maintain the company's operation.
According to public information, Faraday Future expects an operating loss of $345 million to $385 million for the year ended December 31, 2021, an increase of 431% year-on-year; and a net loss of $510 million to $550 million in 2021, an increase of 247% year-on-year.
At present, Jia Yueting's car-making plan is still in the dream stage.