Faraday Future Investigates Allegations of Inaccurate Disclosures

Faraday Future’s FF 91 electric crossover prototype is shown at a press conference at CES 2017 at the Las Vegas Market Pavilions on January 3, 2017 in Las Vegas.

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Electric vehicle pre-production company Faraday Future is postponing its third quarter financial report to complete an investigation into “disclosure allegations.” said in a filing on monday

Delay follows J Capital Research A stock market research report in early October in which analysts accused Faraday Future of falsifying car booking numbers, one indicator of demand for the company’s future vehicles. The report also accused Faraday Future of lying about its ability to mass-produce electric vehicles in Hanford, California, within about seven months, among a host of other concerns.

Faraday’s future press statement On Monday, plans were confirmed to begin deliveries of the company’s FF91 vehicles in July next year. The delayed all-electric crossover, which is expected to include an “unmanned valet” and other high-tech features, was first unveiled at the Consumer Electronics Show in January 2017.

The company also said it lost $ 280 million in the third quarter of 2021, although its financial statements had to be postponed.

Founded in May 2014, Faraday Future went public with the acquisition of a Special Purpose Company (SPAC) and Private Equity Investment (PIPE) in July this year.

Former CEO Jia Yueting filed for Chapter 11 personal bankruptcy in the fourth quarter of 2019 and now serves as director of products and ecosystem at the company.

In the booming electric vehicle industry, several smaller players have faced federal investigations after shortsellers accused them of fraud, including Lordstown Motors, Nikola and the Workhorse group. Canoo also faces federal scrutiny after a string of executive departures and high short-term interests.

In contrast, another newcomer to the electric vehicle industry, Rivian, had a record IPO last week and its stock continued to climb about 15% on Monday amid news that President Biden is signing a bipartisan $ 550 billion infrastructure bill. public money. transportation, broadband and utilities, including $ 75 billion to build a network of charging stations for electric vehicles.

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