Shares of Faraday Future Intelligent Electric fell by 20%
2022.12.16 08:34
Shares of Faraday Future Intelligent Electric fell by 20%
Budrigannews.com – After the company unveiled production plans for its much-delayed luxury electric car, which were contingent on securing additional financing, Faraday Future Intelligent Electric’s shares fell 21 percent premarket on Friday.
Faraday disclosed on Thursday that the company is in talks with both new and existing investors to raise the $150 million to $170 million in capital required to begin production of the FF 91 Futurist in March and begin deliveries a month later.
As a result of a bleak global growth outlook, a lack of funding, sluggish production schedules, and increased losses, the company is one of many EV startup companies struggling to launch its products.
As of November 30, the company’s cash balance was $22.5 million, down from $31.76 million at the end of the third quarter. The company’s shares have dropped by more than 90% this year.
On Thursday, interim Chief Financial Officer Yun Han stated, “We’ve implemented a number of cash conservation measures that have significantly reduced our spending to core items that are essential to delivering the FF 91 Futurist.”
Additionally, the company is dealing with top-level changes. It stated that in order to secure financing, it required investors to approve an increase in the number of shares.
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After Carsten Breitfeld was asked to resign, the board appointed China Chief Executive Xuefeng Chen as Faraday Future’s global CEO last month.
In the meantime, the company claimed that its most recent model had a longer range and better acceleration than Tesla (NASDAQ:) competitors. Rolls Royce, Mercedes-Benz Maybach S, and Inc.’s Model X Cullinan.
