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Under pressure
: Faraday Future boss
Carsten Breitfeld
Photo: Javier Rojas / ZUMA Press / imago images
The pressure on the
electric car start-up Faraday Future, led
by long-time BMW manager
Carsten Breitfeld
(58), is increasing.
After the company was unable to properly file its third quarter figures - the first ever as a publicly traded company - it received a reprimand from the Nasdaq.
The US technology exchange complained that Faraday would not adhere to the rules of the exchange because of the delay.
The company announced this on its website.
This fueled further uncertainty among investors, who were already alarmed.
The price collapsed by almost 10 percent before the trading day, after having already fallen by a good quarter in the course of the month.
Faraday Future, founded in 2014 and based in California, is one of the dazzling electric car companies. The company has been predicted to collapse several
times
, including the controversial Chinese founder
Jia Yueting
(47)
who filed for
personal bankruptcy
in order to get rid of billions in debts. But Breitfeld - on board as CEO since 2019 - succeeded in placing Faraday on the Nasdaq via a Spac IPO this July, raising a billion dollars in fresh capital in the process. The first model, the FF91 electric SUV, is expected to hit the market in 2022.
Eventful months followed.
In early October, the shortseller J Capital Research published a report accusing Faraday of fraud.
"There's a new EV Scam in Town," the aggressive investors headed their 27-page report.
"We don't think Faraday Future will ever sell a car," was the first sentence.
So far, the company is "nothing more than a bucket to collect money from US investors" and let it disappear into a black hole.
At the beginning of November Faraday announced that with immediate effect the experienced financier
Walter J. McBride
would replace the
CFO
Zvi Glasman,
who had
only been appointed in early 2021
;
Glasman will remain on board as a consultant.
In mid-November, the company informed the US Securities and Exchange Commission that it would not be able to submit the quarterly figures on time. The reason: The board has set up a special committee to examine possible irregularities and the allegations from the shortseller report. The auditors would be supported by external lawyers. "Faraday Future strives to conduct its business in the most ethical and transparent manner possible," said the company. The aim of the review is to "ensure that the company adheres to the highest standards of conduct".
Instead of the first quarterly figures as a listed company, Faraday only informed the investors via a short "Business Update".
One was on the track, it said.
The construction of the factory in Hanford, California has made important progress, the FF91 electric car has been technically improved, and the delivery promise for 2022 is adhered to.
The Nasdaq is now giving Faraday 60 days to come up with a plan on how to comply with the rules again.
The company itself stated that it would present the quarterly figures as soon as the investigation was completed.
It did not mention a specific date.
But at least: as long as you will remain listed on the Nasdaq.
lhy
