Faraday Future Intelligent Electric (NASDAQ:FFIE) shares are down nearly 10% in the morning session today after the EV maker exercised the option to purchase its facility in California and simultaneously executed a sale-leaseback.
The move is expected to help the company generate up to $12 million of non-dilutive capital, which it can deploy for plant improvements aimed at the production ramp-up of its FF 91 2.0 Futurist Alliance model.
The facility is expected to churn out nearly 10,000 vehicles annually once the factory build-out is completed. Recently, FFIE delivered the FF 91 2.0 Futurist Alliance to its Founder and Chief Product and User Ecosystem Officer, YT Jia, at its Delivery Co-Creation Day event.
Next, it plans to make vehicle deliveries to superstar Chris Brown and race car driver Justin Bell. Earlier this week, FFIE announced plans to lower its dependence on external funding sources.
The company plans to lower operating costs and people costs and cease to enter into new convertible note commitments with a similar structure to its existing notes. It also plans to halt its equity line of credit program.
Further details on these steps are expected on FFIE’s Investor Day, which follows its third-quarter results on November 20. Analysts expect the company to incur a net loss per share of $3 for the quarter.
What Is the Stock Price Forecast for FFIE?
With today’s price decline, FFIE shares have plummeted by nearly 96% over the past year. While FFIE is yet to see major analyst coverage, a beta of 1.66 and an average trading volume of over four million shares imply that the stock can be prone to wilder gyrations than the broader market.
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