Faraday Future (NASDAQ:FFIE) stock is on the move Tuesday as investors react to news of a new funding agreement to keep the business going.
According to a press release, Faraday has a new financing facility that will allow it to raise up to $600 million. The company will receive an initial payment of $52 million as part of the agreement. That will double its cash on hand as of Aug. 9.
Faraday Future notes that it is currently in talks with institutional investors and investors overseas about obtaining additional funding through this facility. This would allow the company to continue with plans to release its FF 91 electric vehicle (EV) later this year.
Faraday Future CEO Dr. Carsten Breitfeld said the following about the news:
“I am very pleased to have this important new committed capital and framework in place for substantial additional funding. We are working diligently to complete this capital raise process in order to raise sufficient new funds to launch the FF 91. Subject to successful completion of this fundraising process, I am confident that we can deliver cars to our customers in late Q3 or Q4.”
Today’s news brings along heavy trading of FFIE stock. As of this writing, some 17 million shares are on the move. That’s above the company’s daily average trading volume of about 14 million shares.
FFIE stock is down about 18% as of Tuesday afternoon.
There’s more stock market news traders need to know about below!
We’ve got all of the hottest stock news for investors to read about on Tuesday! That includes why shares of Nu Holdings (NYSE:NU), Carvana (NYSE:CVNA) and Gilead Sciences (NASDAQ:GILD) stock are in the news. You can find out more at the following links!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.