Los Angeles-based electric vehicle startup, Faraday Future Intelligent Electric, has reported suspicious activities indicating a coordinated attempt to damage its valuation.
Challenges to Valuation
Faraday Future, the electric vehicle (EV) manufacturer, recently identified a series of activities it deems suspicious and believes they collectively point towards a coordinated effort aimed at undermining its valuation. These activities include alleged attempts to disseminate false information and manipulate market sentiment.
Response and Legal Action
While Faraday Future did not immediately respond to request for further details on the matter, the company has made clear its intention to pursue legal action if it uncovers any illegal short selling or instances of market manipulation and misinformation.
Financial Turmoil
Faraday Future has been grappling with a challenging financial situation. In July, the company’s interim finance chief resigned, prompting the discovery of errors in its financial statements for 2022 and the first quarter of 2023. These developments have added to the ongoing turbulence at the EV firm.
Governance Dispute and Delivery Delays
Additionally, the company has been embroiled in a dispute over governance with one of its major shareholders, FF Top Holding. This dispute led to a significant reshuffling of the company’s board. Faraday Future has also faced delays in delivering its FF 91 2.0 Futurist Alliance vehicle, with the first deliveries taking place in August.
The challenges facing Faraday Future highlight the complexity and volatility of the EV industry, where startups often encounter financial and operational hurdles as they strive to establish themselves in a competitive market.