Sunday, June 23, 2024
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Electric vehicle maker Faraday Future announced on Tuesday that it is withdrawing its production forecast for 2024 due to current market conditions and funding levels, resulting in a more than 11% drop in its shares during extended trading. The company had previously projected producing approximately 1,000 vehicles in 2024.

Faraday Future is seeking additional strategic investors to support its growth and is considering equipment and intellectual property-backed financing to minimize reliance on dilutive funding methods. The company also disclosed that it received a letter from the Nasdaq stock exchange, indicating that its failure to timely file its quarterly report for the quarter ending March 31 could lead to delisting. Earlier this month, Faraday Future announced it would not meet the deadline for its first-quarter filing. The company had already faced a delisting notice from Nasdaq in December for not maintaining the required minimum closing share price of $1.

Electric vehicle companies, including Faraday Future, are struggling with reduced demand as buyers increasingly choose cheaper hybrid vehicles over fully electric ones, influenced by high interest rates and rising inflation. In response to financial challenges, Faraday Future announced its second reverse stock split in five months in February, following a significant drop in its value due to a cash crunch and supply chain issues last year. Despite these setbacks, the company’s shares have risen nearly 70% this year, pushing its stock price above $1.

As of May 23, Faraday Future’s cash balance had decreased to around $5 million, down from $17 million on December 31, 2022.

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