Faraday Future Plans Reverse Stock Split and Delays FF 91 2.0 Futurist Alliance Vehicle Delivery

1. Faraday Future plans a reverse stock split to regain compliance with Nasdaq’s minimum bid price requirements.

2. Nasdaq requires shares to trade above $1, with a 30-day consecutive trading threshold.

3. Faraday Future has also delayed the phase 2 delivery of its FF 91 2.0 Futurist Alliance vehicle to August 2023.

Electric-vehicle startup Faraday Future Intelligent Electric (FFIE) announced its intention to execute a reverse stock split in order to meet Nasdaq’s minimum bid price requirements. Nasdaq necessitates that shares trade above $1, and if a company trades below this threshold for 30 consecutive business days, a notice is sent. Within a 180-day period, the stock must trade above $1 for at least 10 consecutive days to comply with the rules. Faraday Future, which closed at $0.45 on Friday, had previously received an additional 180-day extension from Nasdaq to fulfill the minimum bid price requirement after receiving a notice in January regarding non-compliance with the continued listing rules.

This year, other companies in the electric-vehicle sector, such as Nikola (NKLA.O) and Lordstown Motors (RIDE.O), have also considered or announced reverse stock splits to meet Nasdaq listing norms. Faraday Future’s proposal for the reverse stock split ranges from 1-for-2 to 1-for-90 shares of outstanding common stock, with the final ratio to be determined by the Board following stockholder approval.

However, Faraday Future has encountered challenges, including a cash crunch and a board reshuffle resulting from a governance dispute with one of its major shareholders, FF Top Holding. Last November, the company raised concerns about its ability to continue as a “going concern.”

In addition to the reverse stock split, Faraday Future has decided to postpone the phase 2 delivery of its FF 91 2.0 Futurist Alliance vehicle, originally planned for the end of the second quarter. The new expected delivery date is now set for August 2023. These measures and decisions come as the company navigates its complex financial situation and strives to address its operational challenges.

EV Evangelist, Passionate About Electric Vehicles/Mobility. Tune in on X : @HDEONEV