Shares of Faraday Future Intelligent Electric Inc. (NASDAQ: FFIE), an electric vehicle (EV) company, trade near $0.40. That is down from a 52-week high of $7.85. The stock took a beating recently as the company disclosed it does not have enough money to build its electric sport utility vehicle. The news could ruin the company and put it out of business.
[in-text-ad]
Specifically, Bloomberg reports Faraday wants to build its first SUVs by March. It had barely more than $22 million cash at the end of last month. It needs as much as $170 million banked to begin the production process.
The price of Faraday’s RR-91 base SUV is over $150,000, and the price for some models can run as high as $180,000.
Faraday’s problem goes well beyond its cash position. It has, or will soon have, competition from Ford, Chevy, Hyundai and Tesla. These companies have iron-clad balance sheets and large product design and marketing operations. Their product releases will overrun Faraday’s efforts.
EV companies have started into two categories. The first is the “have nots,” which include Faraday and Rivian. The other is the “haves,” which comprise a large portion of the global car industry. Faraday’s cash problem may take it out of the race completely.
24/7 Wall St.Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
