Faraday Future Intelligent Electric Inc. saw its stock price decrease earlier this month after announcing it had received $30 million in financing commitments from the U.S., Asia and the Middle East.
The announcement of the financing by the Gardena electric vehicle manufacturer, made after the market closed on Sept. 5 when the stock closed at $5.21, caused the price to drop by about 8% the following day when the shares closed at $4.80.
The stock closed at $4.04 on Sept. 12.
The participation from a Middle East investor – Master Investment Group, an investment firm of Sheikh Abdulla Al Qassimi from Ras Al Khaimah in the United Arab Emirates – “represents a significant milestone, underscoring the company’s successful expansion and development efforts in the region,” according to a release from Faraday.
“This financing not only validates Faraday Future’s progress in enhancing its international presence but also strategically positions (it) for growth and new business opportunities,” the company said in its release.
Al Qassimi said that he was delighted to participate in the round of financing on behalf of Ras Al Khaimah and the UAE.
“As Faraday’s strategic partner, I am also excited to bring its upcoming business expansion to Ras Al Khaimah and the Middle East. I believe this will bring unprecedented growth opportunities for (the company),” he said in a statement.
The new financing commitment includes a previously funded $7.5 million and $22.5 million of new investment in the form of convertible notes and warrants to acquire additional shares of the company’s common stock.
The investment from Al Qassimi is not the only project that Faraday has in the Middle East.
In December, Faraday announced it would partner with the Abu Dhabi Investment Office as it looks to establish a regional headquarters, manufacturing facility and an advanced research and development center focusing on next-generation electric vehicle and AI technology in Abu Dhabi, the capital of the UAE.
Matthias Aydt, global chief executive of Faraday Future, said that he is extremely encouraged by the possibilities the new funding brings to the company, including support of its ongoing FF91 2.0 production and enhanced product and software updates.
“Faraday is a unique and differentiated electric vehicle company with significant growth prospects,” Aydt said in a statement.
Competitor sees weakening price
Faraday’s competition has also seen weak stock prices of late.
Fisker Inc., the electric vehicle manufacturer which filed for bankruptcy in June, has not released any quarterly earnings all year. Fisker had been in Manhattan Beach until significantly downsizing its workforce and moving in the spring to La Palma in Orange County.
The company had its stock delisted in late March from the New York Stock Exchange; it now trades on the over-the-counter market.
The carmaker also has not put out any press releases since June 28 when it announced a voluntary recall for 12,523 Ocean vehicles in North America and Europe for an issue involving the outer door handles.
The company estimates that 2.5% of the vehicles may have a defect.
“The door handles on the Fisker Ocean may become stuck due to a malfunctioning mechanism,” the company said in its release. “Addressing this malfunction promptly is essential to ensure the safety and accessibility of the vehicle for its passengers.”
The company’s stock price has been a fraction of a cent for about two months now. It dropped below 1 cent a share on July 17 when it fell by 70.6% to close that day at 0.0040.
Fisker shares closed at 0.0014 on Sept. 12, a decrease of nearly 100% from a year ago when the stock closed at $6.43.
According to the California New Car Dealers Association’s Auto Outlook report from July, new car dealers in the state sold 191,324 battery electric vehicles, which represents 21.4% of the total light-duty vehicles sold in the state through the first half of the year.
That figure is a slight bump from the 190,404 battery electric vehicles sold in the first six months of 2023.
