If you thought Faraday Future’s problems would end when the FF 91 finally went into production, you were sadly mistaken as the company continues to falter.
In the latest setback, Faraday Future announced plans to push back Phase 2 deliveries until August. These are for “Futurist Product Officers” and deliveries were originally slated to begin at the end of the second quarter. As a refresher, traditional deliveries won’t occur until the third phase and the company has previously said that is “subject to timely receipt of sufficient financing.”
More: Faraday Future Celebrates First EV Deliveries With $309,000 Limited Edition FF 91 2.0
Faraday Future didn’t go into detail, but said the delay is “due to a supplier’s timing constraints and the completion timing of an additional system testing related to the company’s enhanced safety testing of a single unique product feature of the FF 91 2.0 Futurist Alliance.”
The delay isn’t the only disappointing development as Faraday Future’s Board of Directors has approved a proposal for a reverse stock split. The move would have to be approved by stockholders and it’s pretty opened ended as the final stock ratio, in a certain range, will be determined by the board after approval.
Faraday Future says the stock split is a “strategic decision” and noted “many brokerage houses and institutional investors have internal policies and practices that either prohibit them from investing in low-priced stocks or tend to discourage individual brokers from recommending low-priced stocks to their customers.”
More importantly, the move aims to increase the stock price above $1 per share, which is the minimum to be listed on the Nasdaq. Trading is halted today for the Juneteenth holiday, but Faraday Future stock ended trading at $0.45 per share on Friday and plummeted to $0.28 per share after-hours.
