Why Faraday Future Stock Plunged Today
Shares of electric vehicle start-up Faraday Future Intelligent Electric (NASDAQ: FFIE) plunged Tuesday after the company made several announcements regarding its financial condition and its plans for beginning vehicle deliveries.
Faraday shares dropped more than 35% in early trading and remained down by 33.8% as of 1:50 p.m. ET.
On Friday, Faraday put out a press release to announce it was delaying initial deliveries of its high-performance FF 91 EV. It also indicated it would perform two maneuvers to help it attract potential new investors and capital in the future. Faraday proposed a reverse stock split in the range of 1-for-2 and 1-for-90 shares to allow it to remain listed on the stock exchange. The proposal will have to be approved by Faraday shareholders, after which the board will decide on the ratio for the reverse split.
Source Fool.com
