Written by Cláudio Afonso | info@claudio-afonso.com | LinkedIn | Twitter
The shares of the EV startup Faraday Future fell more than 8% on early Tuesday reaching a new all-time low at $0.9500 after another delay for the SOP (start of production) to the fourth quarter of the year.
Furthermore, the company warned last week that “certain equipment needed to fully ramp production is currently scheduled to arrive later this year” but not affecting the timing or rate of the production ramp up.
Faraday Future completed its long-announced IPO in July 2021 via a merger with SPAC Property Solutions Acquisition raising around one billion US dollars. At the time, the company said the proceeds would be used primarily to deliver the first units of the first FF 91 model until July 2022, a goal that the company missed.
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During the business update provided last week, Faraday said it received all equipment required for the start of production (SOP) while pointing it for the fourth quarter of the year. Although, the EV maker warned that the timing and amount of additional funding raised “could impact the timing and rate of the production ramp”.
“The Company has taken actions to preserve its cash position, including reducing spending, extending payment cycles, and implementing other similar measures. As of August 26, 2022, the Company’s U.S. cash balance was $47.2 million and restricted cash was $1.5 million. The timing and amount of additional funding raised could impact the timing and rate of our production ramp, which could substantially impact expected production volumes,” the CEO said.
Recently, the company said it entered into a definitive agreement for a new financing facility with total potential funding of $600 million in a convertible secured notes structure.
The EV startup will receive an initial $52 million of committed funds and said it “continues to have active discussions with multiple capital providers for potential significant additional near-term funding”.
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Written by Cláudio Afonso | info@claudio-afonso.com | LinkedIn | Twitter