Tesla

Faraday Future forced to delay deliveries, scrambles for cash


Faraday Future announced that it would push back deliveries of its first vehicles as it scrambles to secure more funding.

Faraday Future never truly seems to be able to escape its whirlwind of issues, and even as it has implemented changes, those problems don’t seem to be ending. Late last week, the automaker announced that it would be pushing back deliveries of its first EV, the Faraday Future FF91 Futurist, despite appointing a new CEO and starting production just last quarter.

As initially reported by Reuters, Faraday Future announced on Tuesday that it was down to its last $30 million in cash and cash equivalents. On Thursday, the company announced it was entering talks with investors to acquire more funding to continue to develop its first electric vehicle offering. However, funding is not the only hurdle ahead of the FF91.

Highlighted in Faraday Future’s most recent announcement, the delivery of its first vehicle is contingent on a couple of factors outside of corporate financing. Foremost, the vehicle has yet to complete crash testing in the United States, making it ineligible for sale. Second, the company remains in limbo as it waits for critical parts to arrive to continue production of the first units.

According to the California-based automaker, deliveries are now set to begin by the end of June, with customers who have already paid for the vehicle in full receiving their vehicles first. However, it should be noted that deliveries were initially planned for the beginning of 2022.

Following this week’s series of announcements, Faraday Future’s stock (NASDAQ: FFIE) crashed to near all-time lows, ending the week at just $0.26. This is down nearly 50% from just one month ago and down 98.6% from its peak of $18.45. In reaction to this movement, the stock’s sell rating has remained in place; this comes after a wave of excitement due to the ousting of the company founder and CEO.

William is not invested in Faraday Future.

What do you think of the article? Do you have any comments, questions, or concerns? Shoot me an email at william@teslarati.com. You can also reach me on Twitter @WilliamWritin. If you have news tips, email us at tips@teslarati.com!

Faraday Future forced to delay deliveries, scrambles for cash





Products You May Like

32 Comments

Leave a Reply

Your email address will not be published. Required fields are marked *