Faraday Future Stock Soars 120% After Founder Comments on… the Rivian Deal

Written by Cláudio Afonso | LinkedIn | X

The shares of the electric vehicle startup Faraday Future soared 120 percent in the first trading hour to $0.59 this Wednesday after its Founder, YT Jia, published a new video on social media.

The company’s founder, who filmed with a TV showing a Rivian article behind him, commented on last night’s announcement from Volkswagen regarding the investment in the EV startup that can go up to $5 billion.

On X, he stated that the investment in Rivian “further underscores the immense potential of the American AI EV market and its leading edge in technology and products”.

“This attracted global giants and was a key reason I chose to start FF in the US. We will continue to strive to unleash FF’s enormous potential and limitless possibilities as soon as possible”, he added.

As of the time of writing, the stock gave up part of the intraday gains and is surging 85 percent at $0.49 per share. Here’s the complete video below:

Despite the 120 percent surge, the stock is still registering losses year to date as shareholders prepare to vote on the possible dilution as the company announced earlier this week that aims to execute a reverse stock split.

The company is targeting a reverse stock split ratio ranging from 1-for-2 to 1-for-40 shares four months after the previous 1-for-3 reverse stock split.

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After a four-month hiatus, the electric vehicle startup resumed deliveries earlier this month, handing over the FF91 2.0 to a retail shareholder.

The proposed reverse stock split is intended to address compliance with Nasdaq’s minimum bid price requirements. In a new video posted on late Monday, the CEO Aydt commented the effort from the company to comply with Nasdaq’s bid requirement.

In a statement, the company said it aims to achieve a post-reverse split stock price of at least $5 per share, though the Board may opt not to implement the reverse split if the stock price naturally meets Nasdaq’s requirements.

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The company has received a deficiency notice from Nasdaq last December after its stock price fell below the required $1.00 per share for 30 consecutive trading days. Further non-compliance was noted when the stock price dropped below $0.10 for ten consecutive trading days, resulting in Nasdaq’s determination to delist the company’s securities.

In addition to the reverse stock split, Faraday Future is proposing an increase in authorized shares to facilitate strategic financing efforts.

The startup says the proposed increase in authorized shares will enable the company to pursue equity and equity-linked financing opportunities, particularly in the Middle East.

Last week, the chief executive Matthias Aydt, shared on LinkedIn that he visited Ras Al Khaimah in the United Arab Emirates (UAE) aiming at reinforcing relationships and discussing strategic collaborations in the region, he said.

Last November, the company announced it would enter into the Middle East market by signing strategic cooperation agreements with Master Investment Group and Siraj Holding LLC, marking the launch of the FF brand in the region.

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Written by Cláudio Afonso | LinkedIn | X