Feb 6 (Reuters) - Shares of Faraday Future Intelligent
Electric Inc soared about 28% in premarket trading on
Monday after the company said it had raised enough funds to
start production of its electric luxury car FF 91 Futurist in
March.
Delivery of the sports utility vehicle, originally slated to
start in late 2022, will now begin before the end of April, the
company said on Sunday.
The development offered a spot of relief to investors who
have seen the stock plummet 92% since listing in July 2021 as
the loss-making startup grappled with a boardroom battle,
governance issues and a dwindling cash balance that hurt its
production plans.
The company plans to hold an investor meeting on Feb. 28 to
vote on a proposal for increasing its outstanding stock, which
it said will allow for future financing to support deliveries.
Major shareholder FF Top Holdings, which has an 8.4% stake
in the firm, has agreed to support such a proposal at the
shareholder meeting, it said.
Los Angeles-based Faraday has moved to save cash in recent
months by slowing development of future cars. It had $22.5
million in cash as of Nov. 30, down from $31.76 million at the
end of the third quarter.
In November, Faraday Future named 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 it went public in 2021.
Its shares rose to $1.38 before the bell on Monday.
(Reporting by Akash Sriram in Bengaluru; Editing by Devika
Syamnath)
