Faraday Future withdraws full-year production forecast as weak EV demand weighs

(Reuters) -Electric vehicle maker Faraday Future said on Tuesday it was withdrawing its production forecast for 2024 due to current market conditions and levels of funding, sending its shares down more than 11% in extended trading.

The company said in November it had expected to make around 1,000 vehicles in 2024.

Faraday said on Tuesday it is pursuing additional strategic investors to support growth as well equipment, and intellectual property-backed financing to reduce reliance on dilutive funding.

Faraday also said it received a letter from the Nasdaq stock exchange indicating that its failure to timely file its quarterly report for the quarter ended March 31 would serve as additional basis for delisting the stock.

The company said earlier this month that it would be unable to publish its first-quarter filing on time.

Faraday was hit with a delisting notice from the Nasdaq in December over its failure to comply with rules that require a minimum closing share price of $1.

EV firms are grappling with slowing demand as price-conscious buyers opt for relatively cheaper hybrid vehicles over battery-powered cars due to high interest rates and rising inflation.

Faraday announced plans for a reverse stock split in February, its second stock split in five months after a cash crunch and supply-chain issues wiped out nearly 99% of its value last year.

The company’s shares have gained nearly 70% so far this year and its stock price has grown to over $1.

Its cash balance, however, has dwindled to around $5 million as of May 23, compared with $17 million on Dec. 31, 2022.

(Reporting by Zaheer Kachwala in Bengaluru; Editing by Maju Samuel)