(Yicai Global) Nov. 1 -- "I cannot continue knowing the devastating impact we are having on the lives of our employees, their families and loved ones," Faraday Future co-founder Nick Sampson wrote in a resignation letter leaked to the Chinese media. 

The troubled electric car startup, which is locked in dispute with its main Chinese investor and likely on the brink of bankruptcy, lost the second of its three founders yesterday after the company forced half of its employees to take unpaid time off, leaving 500 staff to produce and deliver its first vehicle before a year-end deadline.

Most employees who started on or after May 1 will go on unpaid leave this month and next, while those who joined earlier will work for reduced wages. The furlough is expected to last until year-end.

Sampson's valedictory letter also spoke of the "ripple effect this will have on lives throughout our suppliers and the industry as a whole." He left the Los Angeles-based company with immediate effect.

Faraday Future told Yicai Global that the firm is introducing temporary measures to ease short-term cash flow "caused by Evergrande's default," adding that the core team dedicated to producing the FF91 is still in place and co-founder Jia Yueting is still overseeing US operations. The company said it is seeking more investors and is very confident that operations and salaries will return to normal within two months. 

The automaker recently fell out with its biggest shareholder Evergrande Health Industry Group after the white knight investor said Faraday did not meet the requirements outlined for another cash injection in July. The dispute went to an arbitration panel that ruled the car firm can raise up to USD500 million from other investors under certain conditions, Yicai Global reported on Oct. 26.

Faraday will find it difficult to raise new funds since Evergrande is still the main shareholder, according to industry insiders. Though arbitration offers a glimmer of hope for future financing, few companies will be willing to extend funds under such strict conditions, they added.

Editor: Emmi Laine