Written by Cláudio Afonso | LinkedIn | X
After delivering one FF 91 2.0 electric vehicle year to date, the electric vehicle startup Faraday Future is preparing to continue the deliveries after a hiatus period in early 2024.
The YouTuber “The Omar Gosh Vlogs”, who has over 1 million followers, visited the headquarters of the company in LA las Sunday and the video went live this Wednesday.
The company will host an investor community day at its headquarters on July 20, eleven days before the Annual Meeting where shareholders will be voting on several proposals, including a reverse stock split.
Filmed last Sunday, the YouTuber was received by the CEO Matthias Aydt and Faraday’s team who toured the facility covering, among others, the R&D area, the pre-delivery operations and Faraday’s Formula E concept car.
When questioned about the vehicles in two of the rooms, Larry, an employee from the EV startup revealed, “These are delivery vehicles. We have a couple of gamma vehicles over there.”
Elaborating on the process within the R&D building, he explained, “Ideas are conceptualized upstairs with engineers and code writers, then partnered with counterparts in China”.
“Once the code is developed, it moves downstairs into these cars and eventually to gamma vehicles. We are constantly improving the quality, functionality, and capabilities of the vehicle. It’s an engineer’s playground,” he added.
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Larry highlighted the progression from concept to implementation, stating, “It takes three months from an idea to something we could actually put inside a car. The only potential delays come from government approval, as we must comply with regulations to ensure public safety. We work as fast as the government will allow us.”
At the upcoming Annual Meeting on the last day of July, the company is seeking approval from shareholders after the approval from FF’s Board on executing a reverse stock split with a ratio ranging from 1-for-2 to 1-for-40.
If approved, the ratio will be defined by the company’s Board of Directors later this quarter allowing the company’s stock to regain compliance with the Nasdaq listing rule.
In the statement released on Monday morning, the company explains, “The reverse stock split is mathematical and doesn’t change your relative ownership in the Company, but it does affect the number of shares outstanding and the price per share”.
“While 40 to 1 is the maximum ratio that the Company’s Board of Directors may approve, we believe it would be prudent to provide a margin of safety over the longer term with respect to Nasdaq’s minimum bid requirement given it is not possible to predict how Faraday Future’s stock price will develop,” Faraday Future added.
Faraday will also seek approval to increase the number of authorized shares of Class A and Class B common stock from 463,312,500 to 4,169,812,500, and the total number of authorized shares of common and preferred stock from 473,312,500 to 4,179,812,500.
Shareholders will also vote to elect five directors to serve until next year’s annual meeting as the board also seeks ratification of Macias Gini & O’Connell LLP as the independent accounting firm for the current fiscal year.
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Another item on the agenda is an amendment to the 2021 Stock Incentive Plan to increase the number of shares of Class A Common Stock available under the plan by 88,252,926 shares.
On Friday, the company also said it entered into a $4.9 million lease financing arrangement with Utica Leaseco, as revealed in a SEC filing.
The agreement aims to support the EV maker’s operational and production capabilities. Year to date, the company has delivered only one vehicle as it seeks more funding in the Middle East region.
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Written by Cláudio Afonso | LinkedIn | X
