Written by Cláudio Afonso | LinkedIn | X
Shares of the electric vehicle startup Faraday Future are currently trading 19 percent higher during the pre-market session on Friday. On May 17, the stock price skyrocketed to $3.89 although the earnings results reported earlier this week have plummeted the shares by 91 percent to $0.35 per share.
On Thursday, and in a reaction to a 62 percent tumble in the stock price in the previous day, the CEO Matthias Aydt posted a video clarifying some of the most asked questions by investors including dilution and the bankruptcy risks.
Following the video, the stock surged 27 percent as the company says that aims to provide a strategic updated “in the next month or two”.
Regarding the dilution, Aydt said the shares were gradually issued over several months to existing institutional investors, primarily through convertible bonds, to prevent bankruptcy and delisting amidst severe financial difficulties.
NEVER MISS AN UPDATE
The chief executive emphasized the collective sacrifices made, including salary reductions and cost-cutting measures, which have positioned the company for a potential rebirth.
He also reassured that the company and original institutional investors have not engaged in transactions with the nearly 400 million shares post-issuance, reaffirming commitment to protecting retail investors’ interests.
Faraday disclosed on Wednesday it had “preliminary discussions with several global OEMs and suppliers” on how the company can “help build a bridge between US and Chinese automotive industries through industrial coordination and collaboration”.
The company is expecting to provide additional details on the “US-China Automotive Industry Bridge Strategy” which reflects an adjusted corporate strategy by returning to the earlier two-brand setup to distinguish market segments.
Faraday admitted that the move will enable the integration of FF’s high value “Ultimate AI TechLuxury” solutions and features of its I.A.I technology into vehicles in a more affordable mass market product segments.
During the earnings conference call last night, the company did not take any questions from analysts besides the common opening remarks from the management.
NEVER MISS AN UPDATE
The California-based startup published on Tuesday its fourth quarter and full year financial results disclosing that it is withdrawing its production target guidance for 2024.
The company stated that the reason for the decision is the “current market conditions and current levels of funding the company”. In the previous financial update last November, the company said it expected to produce about 1,000 vehicles this year.
The company announced on Tuesday that Nasdaq granted an extended stay of the suspension pending a hearing with Nasdaq’s Hearings Panel.
The company has been confronting the possibility of being delisted from Nasdaq due to ongoing non-compliance with several key listing requirements.
Over the past six months, the company has received multiple notifications from Nasdaq, highlighting critical issues that threaten its status on the exchange.
NEVER MISS AN UPDATE
Written by Cláudio Afonso | LinkedIn | X
The post Faraday Future Stock Rebounds After a 91% Crash in 8 Days first appeared on EV.