Shares of electric vehicle company Faraday Future Intelligent Electric (NASDAQ:FFIE) are down nearly 33.75% at the time of writing today after it announced an offering of Class A shares and warrants to the tune of nearly $300 million.
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Separately, the company’s Board has also approved a proposal for a reverse stock split in the range between 1-for-2 and 1-for-90 shares. The proposal will now undergo stockholder approval and the final ratio will be zeroed upon post this approval.
Further, FFIE also updated the delivery schedule of FF 91 2.0 Futurist Alliance Phase 2 to August 2023 from the earlier end of the second quarter of 2023. The change comes after the company faced timing challenges from a supplier and the completion of an additional testing system.
Today’s price decline comes on top of an 82.4% drop in FFIE shares over the past year. Despite this value erosion, bears still remain strong with a short position of nearly 16.7% in FFIE shares at present.
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