Feb 6 (Reuters) - Shares of Faraday Future Intelligent
Electric Inc rose about 8% to $1.17 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 stock has plummeted 92% since listing in July 2021 as
the loss-making startup grappled with a boardroom battle,
governance issues and a dwindling cash balance that upended its
Faraday plans to hold an investor meeting on Feb. 28 to vote
on a proposal for increasing its outstanding stock, in a bid to
raise financing in the future to support deliveries.
Major shareholder FF Top Holdings, which has an 8.4% stake,
has agreed to support such a proposal at the meeting, it said.
Los Angeles-based Faraday has moved to save cash in recent
months by slowing development of cars. It had $22.5 million in
cash as of Nov. 30, down from $31.76 million at the end of the
In November, the company named China head Xuefeng Chen as
its chief executive officer after Carsten Breitfeld was asked to
resign following a review of its performance since the listing.
(Reporting by Akash Sriram in Bengaluru; Editing by Devika
Syamnath and Sriraj Kalluvila)