Can a New Board Save Faraday Futures (FFIE) Stock?

  • Faraday Future (FFIE) stock is climbing 4% in early trading.
  • The EV maker named two new board members.
  • The company is looking to raise $150 million to $170 million.
FFIE stock - Can a New Board Save Faraday Futures (FFIE) Stock?

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Faraday Future (NASDAQ:FFIE) stock is climbing 4% in early trading and trending on social media. The upscale electric vehicle maker announced late yesterday that it had appointed two new individuals to its board, and it updated its production guidance.

California-based Faraday has been coping with cash-flow issues and management changes in recent weeks.

Faraday’s New Board Members and Updated Production

The automaker’s two new board members are Ke Sun and Faraday’s CEO, Xuefeng Chen. They replace Dr. Carsten Breitfeld and Edwin Goh, who both resigned on Dec. 26.

Sun has a background in finance and investor relations. From August 2020 to June 2022, she was the CFO of China-based EV maker Yudo New Energy Auto. She has also served as the Vice President of Investor Relations for BAIC, a large Chinese automaker.

Chen was Executive Vice President, Manufacturing and Executive Vice President of Chery Jaguar Land Rover. According to Faraday, he “became the youngest person in charge of the China-side of business in automotive joint ventures at the age of 39.” Chen was named CEO of Faraday last month,

Faraday, which announced on Dec. 16 that it would start producing its flagship EV, the FF 91 Futurist, next March, noted yesterday that it ” expects to start production of a saleable FF 91 Futurist at the end of March 2023, with deliveries before the end of April.” It added, however, that the timeline would be “subject to the timely availability of additional funding, and receipt of shareholder approval for a sufficient increase in FFIE’S authorized shares.”

The EV maker reported that it had finished building its plant and deploying equipment in its “vehicle assembly areas.”

Cash Issues and Personnel Changes Weigh on FFIE Stock

On Dec. 16, Faraday disclosed that it was holding talks “with … potential new investors and existing FF investors” in an effort to obtain the additional $150 million to $170 million that it would require to produce its flagship EV.

The automaker also reported that an existing investor had pledged to provide another $30 million to the company.

On Dec. 13, the automaker announced that its head of Product Definition & Eco Mobile Systems and Business Development, Matthias Aydt, would be promoted to Global Senior Vice President, Product Execution.

On the date of publication, Larry Ramer 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.

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been PLUG, XOM and solar stocks. You can reach him on Stocktwits at @larryramer.


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