Why Is Faraday Future (FFIE) Stock Up 29% Today?

  • Faraday Future (FFIE) stock is rising on a new shareholder agreement.
  • This would turn FF Top into a major investor in the company.
  • The deal would provide FF Top with super voting rights and influence over the board.
Cellphone with business logo of American electric vehicle company Faraday Future Inc. in front of web page. Focus on center of phone display. Unmodified photo.. FFIE stock

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Faraday Future (NASDAQ:FFIE) stock is on the rise Wednesday after the company signed a new “Amended and Restated Shareholder Agreement.”

This agreement is with FF Top, which is a wholly-owned subsidiary of FF Global Partners. That company is made up of several core managers of Faraday Future. The agreement would secure FF Top as an “important shareholder” in FFIE stock.

According to the agreement, FF Top would gain super voting rights with one share being worth 10 votes. Adding to that, those rights change to one share being worth 20 votes if the market capitalization of Faraday reaches $3 billion.

To go along with this, the agreement with FF Top would give it considerable control over the company’s Board of Directors. It would allow the investor to nominate four potential board members out of the electric vehicle (EV) company’s seven.

Before any of this can happen, FF Top first needs to secure approval from shareholders of FFIE stock. The investor intends to submit a proposal to shareholders seeking approval.

What Else Is Happening With FFIE Stock?

Alongside the super voting news, Faraday Future also revealed progress on its China expansion plans. The company signed a strategic agreement with the City of Huanggang to build its FF China Headquarters there.

FFIE stock is up 28.7% in pre-market trading on Wednesday.

Investors seeking out more of the most recent stock market news will want to keep reading!

InvestorPlace is home to all of the hottest stock market news traders need to know about on Wednesday! That includes this morning’s biggest pre-market stock movers as well as the latest news concerning Mullen Automotive (NASDAQ:MULN) stock. You can catch up on all of that news at the links below!

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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.

Article printed from InvestorPlace Media, https://investorplace.com/2023/01/why-is-faraday-future-ffie-stock-up-29-today/.

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