It’s seldom good news when a company you’ve invested in starts asking for more money. It really should be making its own money and, better yet, giving money back to you. Electric vehicle maker Faraday Future Intelligent Electric (NASDAQ:FFIE) demonstrated what can happen when a company goes back to the well, and the hefty decline seen in Friday afternoon trading proved what a problem it can be.
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Faraday Future revealed that it was looking for an extra $150 million to $170 million in capital. It’s already got a good start on that, thanks to a binding letter of intent from a current investor that promised an extra $30 million. However, it’s not looking for extra money for “general corporate purposes.” It wants that money to get out a delivery of 91 vehicles from its California factory. The delivery is expected to be ready at the end of March 2023 for April delivery, so it’s set to make at least some progress toward earnings.
The vehicles themselves—known as the FF 91 Futurist—are impressive by any standard. With a range of 381 miles, the vehicles can go from 0 to 60 mph in 2.27 seconds. It also boasts a “third internet living space” as well as a “user mobility ecosystem platform.” However, just weeks ago, the company revealed that it had “substantial doubt” about continuing as a going concern. Posting losses throughout the last two years can’t be helpful in staying alive as a company.
The market’s response to Faraday Future isn’t exactly promising, either. No analysts are offering coverage. There’s little movement from insiders. This leaves hedge funds to offer the best look into the company’s future. Hedge funds have all but abandoned Faraday Future, turning Very Negative on the company.
