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LOS ANGELES - Faraday Future Intelligent Electric Inc. (NASDAQ:FFIE), an electric vehicle company with a market capitalization of approximately $57 million, has announced an Extraordinary General Meeting of Stockholders on March 7, 2025. According to InvestingPro data, the company faces significant financial challenges, with a current ratio of 0.32 indicating potential liquidity concerns. The meeting aims to seek shareholder approval for a series of proposals intended to support the company’s strategic growth and long-term initiatives.
One of the key proposals is the Share Authorization Proposal, where the company seeks to increase its authorized Common Stock by 24%, from 104,245,313 to 129,245,313 shares. This move is part of a broader plan to raise the total number of authorized shares, including Preferred Stock, from 114,245,313 to 139,245,313. The increase is primarily to meet the company’s obligations to holders of its convertible notes.
In addition, the company is requesting approval for the Private Placements Proposal, which involves the issuance of Common Stock in accordance with Nasdaq Listing Rule 5635(d). This measure is to ensure regulatory compliance and to honor obligations to holders of the company’s convertible notes.
The meeting will also include the Auditor Ratification Proposal, confirming the appointment of Macias Gini & O’Connell LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.
Faraday Future’s CEO Matthias Aydt emphasized the importance of the authorized share increase for executing the company’s dual-brand strategy, which includes the premium FF 91 program and the new FX mass-market initiative. The company has recently completed two $30 million financings, which Aydt cites as evidence of investor confidence.
The company is focused on remaining compliant with Nasdaq’s continued listing standards, including the minimum bid price rule, and is taking strategic steps to enhance its business plans and operations. A reverse stock split is considered a last resort for compliance. The stock has experienced significant volatility, with InvestingPro data showing a 92% decline over the past year and a beta of 4.9, indicating substantial price swings compared to the broader market.
Faraday Future maintains ongoing discussions with potential strategic investors, including those from the Middle East, and has engaged with top-tier investment banks, suppliers, and OEM partners. InvestingPro analysis reveals the company’s challenging financial position, with an EBITDA of -$108 million in the last twelve months. For deeper insights into FFIE’s financial health and 12 additional ProTips, subscribers can access the comprehensive Pro Research Report, which provides expert analysis and actionable intelligence for informed investment decisions.
Stockholders of record as of January 28, 2025, are entitled to vote on the proposals at the virtual meeting, which will be accessible at http://www.virtualshareholdermeeting.com/FFIE2025SM.
The information in this article is based on a press release statement from Faraday Future Intelligent Electric Inc.
In other recent news, Faraday Future Intelligent Electric Inc. announced significant developments in its corporate structure and financial strategy, as well as its third-quarter financial results for 2024. In a strategic move, Faraday Future has entered into several key agreements and adjusted stockholder rights, as outlined in a recent SEC filing. The electric vehicle manufacturer issued a single share of newly designated Series A Preferred Stock to investor Matthias Aydt, which carries substantial voting power, specifically on proposals to increase authorized Common Stock.
Moreover, Faraday Future disclosed two Letter Agreements with institutional investors from 2024 financings, preventing investors from converting notes at prices below initial conversion levels prior to stockholder approval. The company also plans to change its NASDAQ ticker symbol to ’FFAI’ in early 2025, reflecting its strategic pivot towards AI technologies. As part of this AI-focused strategy, Faraday Future aims for full-vehicle AI integration, targeting cross-domain computing, algorithms, and data integration.
In addition to these strategic moves, Faraday Future’s third-quarter financial results for 2024 were discussed in an earnings call led by John Schilling, Global Director of Communications and Public Relations. Newly appointed CFO, Koti Meka, and CEO, Matthias Aydt, were present to discuss the results. However, no specific financial metrics or bullish or bearish highlights were provided. These recent developments mark important steps in Faraday Future’s ongoing journey in the electric vehicle market and its commitment to AI-powered electric vehicles.
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