• Thu. Aug 18th, 2022

Electric vehicle maker Faraday Future postpones EV launch as it seeks more cash from investors

ByRandall B. Phelps

Jul 25, 2022

Faraday Future Intelligent Electric Inc. FFIE,
-11.54%
said in a Monday night filing that it was continuing “discussions and negotiations” with unnamed potential investors to raise more money to fund its business through the end of the year and beyond. This has led to delaying the start of production of its FF91 electric crossover, its flagship electric vehicle, to the third or fourth quarter of this year, the company said. Faraday Future “requires additional liquidity to commercially launch FF91 and is currently seeking to raise additional capital to fund its operations through” Dec. 31, it said in the filing. Cash requirements after launch will depend on costs and the company’s ability to raise additional funds, he said. “Any challenges in supplier commitments, delays in ramping up capacity or labor at the company’s manufacturing facility in Hanford, California, or in sales commitments and service, rising material prices or continued global supply chain disruptions may further increase the need for additional capital” for the launch, Faraday Future said. Shares of Faraday Future rose 3% in Monday’s extended session after ending the regular trading day down more than 11%. The company went public through a SPAC agreement in July 2021 and earlier this year received a notice of non-compliance from Nasdaq over filing delays.