Faraday Future co-founder quits: 'The company is effectively insolvent'

Chinese electric vehicle developer Faraday Future's co-founder Nick Sampson has resigned, tech news website The Verge reported on Tuesday, a week after the cash-starved company planned pay cuts and layoffs to reduce operational costs. The website also said the layoffs weren't enough, and the company was going to shut down some operations — and some of the workers who survived the layoffs were being furloughed without pay.

The move comes as the company is embroiled in a stand-off with its primary investor, China's Evergrande Health Industry Group, after a planned $2 billion investment went sour. And Sampson's resignation comes one day after His departure comes just one day after longtime GM exec Peter Savagian, Faraday's senior vice president of technology and product development, also left.

Faraday Future, which has ambitions of overtaking Tesla, confirmed the departures of Sampson and Savagian and said "We wish them the best of luck in their future endeavors."

Faraday Future can attempt to seek financing from sources other than Evergrande Health, according to an interim ruling earlier this month by a Hong Kong arbitration court in a dispute between the startup and its main investor.

"The company is effectively insolvent in both its financial and personnel assets, it will at best will [sic] limp along for the foreseeable future. I feel that my role in Faraday Future is no long [sic] a path that I can follow, so I will leave the company, effective immediately," Sampson wrote. "I cannot continue knowing the devestating [sic] impact we are having on the lives of our employees, their families and loved ones as we as the [sic] ripple effect this will have on lives throughout our suppliers and the industry as a whole."

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