Faraday Future – Production of the luxury electric car FF 91 Futurist begins in March

The stock price of Faraday Future rose by 28 percent in pre-market trading following the announcement. This announcement from the company spokesman was a great relief for investors, who had watched the stock plummet by 92 percent since its IPO in July 2021. The startup had been struggling with boardroom disputes, management issues, and a dwindling cash reserve.

The company now plans to hold an investors' meeting on February 28 to vote on a proposal to increase the outstanding shares. According to their own statements, this is intended to secure future financing and production plans. Major shareholder FF Top Holdings, which holds an 8.4 percent stake in the company, has agreed to support such a proposal at the shareholders' meeting, according to the company.

Money Reserves Are Melting Away

Los Angeles-based company Faraday has attempted to save money in recent months by slowing down the development of future vehicles. As of November 30, the company had $22.5 million in cash on hand, down from $31.76 million at the end of the third quarter.

Only in November, Faraday Future appointed its China head Xuefeng Chen as Chief Executive Officer after Carsten Breitfeld was asked to resign following a review of the company's performance since its IPO in 2021.