Shares of Faraday Future Intelligent Electric saw a decline on Wednesday, following the announcement from the financially strained electric-vehicle company regarding its plans to raise up to $90 million through a stock offering in a bid to bolster its funding.
The intended use of these proceeds is to bolster the company's working capital. Matthias Aydt, the recently appointed CEO of Faraday Future, also affirmed the company's commitment to improving its cash position while implementing stringent cost controls and addressing supply chain issues.
Matthias Aydt disclosed that Faraday Future is currently engaged in active discussions with strategic investors as part of a comprehensive effort to address its funding challenges.
Shares of the company, which presently holds a market value of $45.75 million, experienced a 30% decline, falling to $1.76, with a brief dip to a record low of $1.66 shortly after the market opened.
Faraday Future finds itself embroiled in a governance dispute with one of its major shareholders, FF Top Holding, and had previously raised concerns about its ability to maintain its status as a “going concern” in the previous year. Consequently, the company's shares have depreciated by more than 85% since the onset of 2023.
Earlier this month, Faraday Future made allegations of a “coordinated effort” aimed at undermining its valuation.
As the company endeavors to secure additional funding and navigate its complex financial landscape, stakeholders closely watch the developments surrounding Faraday Future Intelligent Electric.