Faraday Future (NASDAQ:FFIE) stock is gaining on Tuesday following news of the electric vehicle (EV) company getting more cash to work with.
According to a press release from Faraday Future, several financial investors are willing to lend the company up to $600 million. This would be through a non-binding term sheet for a proposed convertible term loan facility. That includes potential senior secured convertible notes.
So why is Faraday Future seeking out additional funding? The company revealed in a filing with the U.S. Securities and Exchange Commission (SEC) that it didn’t have enough money to produce its FF 91.
That’s interesting considering Faraday Future CEO Carsten Breitfeld said in June that the company had enough cash to produce the FF 91. This had it seeking out at least $200 million to continue production facilities in 2022 and into the following year.
FFIE Stock: FF 91 Delayed
To go along with this news, Faraday Future announced it had to delay to release of the FF 91. This has it expecting deliveries of the EV to start showing up sometime in the third or fourth quarter of the year. It’s worth noting that FFIE is struggling with production of the FF 91 despite only having 401 preorders of the EV as of late May.
Today’s news has FFIE stock seeing heavy trading. As of this writing, more than 51 million shares are on the move. That’s a jump from its daily average trading volume of around 11.7 million shares.
FFIE stock is up 29.5% as of Tuesday morning.
Investors looking for more hot stock market news will want to stick around!
InvestorPlace has all the latest stock coverage traders need for Tuesday! Among that is what has shares of Innoviz (NASDAQ:INVZ), Pinterest (NYSE:PINS), and AMTD Idea (NYSE:AMTD) stock moving today. You can get up to speed on all of this news at the links below!
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On the date of publication, William White did not have (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.