Faraday Future drops after flagging funding crunch

Electric Last Mile Solutions

26/07/2022 13:48

** Faraday Future Intelligent Electric Inc's  FFIE.O  shares
down 8.7% to $2.1 in premarket trading after the
electric-vehicle maker flagged the need for more cash to launch
its FF91 luxury model
    ** Stock to fall for seventh straight day, if losses hold
    ** The Los Angeles, California-based company is in talks to
raise more than $200 mln to fund production activities until
year-end and beyond; warns first U.S. deliveries of FF91 could
also get delayed to the fourth quarter because of supply chain
issues  urn:newsml:reuters.com:*:nL4N2Z729D
    ** A funding squeeze amid deteriorating market environment
and soaring cost pressures due to a tight labor crunch and
supply chain woes have pressured new-age startups that are
unprofitable and burning cash
    ** Last month, Electric Last Mile Solutions  ELMS.O , an
electric delivery van startup, filed for Chapter 7 bankruptcy
protection blaming lack of funding  urn:newsml:reuters.com:*:nL4N2Y13I5
    ** About 786,600 shares of have traded so far, ~4.3% of
their 30-DMA volume of 18.4 mln shares
    ** As of last close, stock down 56.8% YTD

 (Reporting by Devik Jain in Bengaluru)
 ((Devik.Jain@thomsonreuters.com;))