Dec 16 (Reuters) – Shares of Faraday Future Intelligent Electric (FFIE.O) tumbled 21% on Friday after the company unveiled production plans for its much-delayed luxury electric car that hinged on securing additional financing.
The company is in talks with new and existing investors to raise the $150 million to $170 million in capital needed to start production in March and deliveries a month later of the FF 91 Futurist, Faraday disclosed on Thursday.
The company is one of the many EV startups struggling to launch its products as a bleak global growth outlook and a funding squeeze dented production schedules and compounded losses.
The Los Angeles-based company’s shares are on track for their worst day in nearly five months, having lost more than 90% of their value this year.
Faraday Future said it had $22.5 million in cash as of Nov. 30, down from $31.76 million at the end of the third quarter.
“We’ve implemented a number of cash conservation measures that have significantly reduced our spending to core items that are essential to delivering the FF 91 Futurist,” interim Chief Financial Officer Yun Han said on Thursday.
The company, which said it required investors to approve an increase in the number of shares to secure the financing, is also grappling with top-level changes.
Great Hill Capital Chairman Thomas Hayes said the company may face difficulties raising funds, adding, “Only hope is if they can get existing investors who are stuck to double down.”
Last month, the board appointed Faraday Future’s China Chief Executive Xuefeng Chen as its global CEO after Carsten Breitfeld was asked to resign.
Meanwhile, the company said the latest generation of its car had longer range and better acceleration than rivals such as Tesla Inc’s (TSLA.O) Model X, Mercedes Benz (MBGn.DE) Maybach S and Rolls Royce Cullinan.
