What happened
Troubled electric vehicle (EV) start-up Faraday Future Intelligent Electric (FFIE -7.59%) will provide a business update for investors tomorrow, but it prefaced that with some news that concerned investors yesterday. The reaction had the stock down as much as 15% this morning. As of 12:33 p.m. ET, Faraday Future shares were still lower by 10.4%.
Image source: Faraday Future Intelligent Electric.
So what
Faraday has previously warned investors it would need to secure more funding to be able to launch its first electric car. In its third-quarter report released last month, the company said it was optimistic it would be able to raise additional funding so it could launch its high-performance FF 91.
Investors will get an update on that tomorrow, when the company hosts a business update for investors. But it announced senior management changes yesterday that has investors fearing there could be bad news coming.
Now what
The company named a new global senior vice president for product execution after the previous executive left the company. It also named new acting heads for business development and production definition and mobile systems, respectively.
Tomorrow the company plans to let investors know "the company's global business transformation plan, which includes a vehicle delivery plan for FF 91 Futurist." But it will be any financial update that investors should focus on.
The stock is down about 80% in the last six months, as the company has worked to garner enough capital to launch its first vehicle. It seems to have reached that goal, with commitments from a new financing facility for more than $100 million since the start of the third quarter.
But simply getting to its initial launch date won't be enough to satisfy investors. Some aren't waiting to hear what the company has planned beyond that from tomorrow's update.
