Brief Summary
The success of Faraday’s intentions to introduce its first electric vehicle (EV) in 2018 is still dependent on the company successfully raising further capital.
It would not come as a surprise to learn in a subsequent update that the debut of FF 91 would be postponed any further or that the volume anticipated might be reduced.
Faraday Future Intelligent Electric (NASDAQ:FFIE)
Over the last month and a half, shares of Faraday Future Intelligent Electric (NASDAQ:FFIE) have seen a roller coaster ride. After reading the most recent update, however, it became much easier to see how the electric vehicle (EV) start-up was financially and in terms of its operations. Because of this, the share price dropped by approximately 24 percent earlier today. As of 1 p.m. Eastern Time, the stock had not recovered from its 21.4% loss.
What is the Reason?
At the beginning of this month, Faraday Future Intelligent Electric (NASDAQ:FFIE) announced that it would be delaying the release of its high-performance FF 91 vehicle while it works to raise money to finance the development of the vehicle. Two weeks ago, the electric vehicle (EV) manufacturer released its report for the second quarter, stating that deliveries would not begin until the third or fourth quarter.
The company provided the latest update yesterday night, stating that it anticipates that testing, validation, certification, and delivery will all be completed during the fourth quarter. Additionally, Faraday reaffirmed that the company’s existing production and ramp plans for the FF 91 are contingent on the company getting additional funding. That may be why shareholders are selling the company’s stock today.
What’s Next?
As of the 26th of August, Faraday Future Intelligent Electric (NASDAQ:FFIE) disclosed to its investors that it has less than $50 million in cash and restricted cash on its balance sheet. “The timing and amount of further money raised could affect the timing and rate of our production ramp, which could dramatically impact planned production levels,” the business stated in a statement.
Earlier this month, Faraday Future Intelligent Electric (NASDAQ:FFIE) announced that it had reached an agreement with institutional investors to provide $52 million in the short term, with the possibility of as much as $600 million in total funding. The report provided last night demonstrated that Faraday has other goals to achieve before it can be considered a successful business.
Featured Image : Megapixl © Aprescindere
Author Shariq Khan 
